Bringing New Ideas to AAV Gene Therapy
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by Erik Wiklund
November 20, 2025
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4 min
In 2025, the AAV gene therapy field has faced significant challenges, including severe toxicity leading to fatalities in clinical trials and a dramatic decline in venture capital investments by over 80%. Major companies like Pfizer and Biogen are exiting the space, raising questions about the future of AAV therapy. Key issues include commercial viability, high development costs, and technical challenges related to gene delivery and expression levels. Despite setbacks, ongoing academic and industry efforts aim to refine AAV capsids and utilize circular RNA to enhance therapeutic effectiveness and safety, paving the way for a potential resurgence in AAV gene therapy.
1. AAV gene therapy has seen a significant decline in venture capital since 2020-21. 2. Fatalities from severe toxicity in clinical trials have raised concerns. 3. Major companies are withdrawing from AAV gene therapy. 4. Technical challenges include achieving sufficient gene delivery levels. 5. Circular RNA offers potential to enhance gene therapy effectiveness. 6. Joint efforts in academia and industry are crucial for future advancements.
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