SPACs and the race to cell and gene therapy breakthrough

In his latest column, Joseph reviews how special purpose acquisition companies have impacted the cell and gene therapy field in the last 5 years.

Special purpose acquisition companies (SPACs) have become an important vehicle for cell and gene therapy (CGT) companies to go public. Compared to traditional IPOs, SPACs offer several advantages: faster execution, upfront price discovery, the possibility of raising additional capital, lower marketing costs, and access to operational expertise. However, they also carry some downsides, such as the risk of capital shortfall from potential investor redemptions [1].

Several high-profile deals have recently taken place, demonstrating the growing use of SPACs in this sector:

Celularity Inc. (NJ, USA), a clinical-stage cellular medicine company, entered into a business combination agreement with GX Acquisition Corp (NY, USA). The gross proceeds from this transaction totaled approximately USD$138 million [2].

In May 2021, Jasper Therapeutics (CA, USA), a biotechnology company focused on novel curative therapies for hematopoietic stem cell transplantation, merged with Amplitude Healthcare Acquisition Corporation (NY, USA). The deal included up to USD$100 million in trust at Amplitude and a concurrent fully committed USD$100 million in private investment in public equity financing from leading institutional investors [3].

One of the latest deals in this space was the 2021 merger between GreenLight Biosciences Inc. (MA, USA) and Environmental Impact Acquisition Corp. (NY, USA), a SPAC backed by Canaccord Genuity Group Inc. (Vancouver, Canada) for USD$1.5 billion. GreenLight’s co-founder and CEO, Andrey Zarur, commented on the strategic benefits:

“Going public through this partnership will accelerate development and commercialization by enabling us to attract talent, purchase tools, scale our manufacturing infrastructure, advance regulatory approvals, and further develop the science necessary to address some of humanity’s most pressing challenges [4].”

In August 2023, Addimmune (MD, USA), a biotechnology startup developing a cell therapy for HIV, announced plans to go public through a merger with 10X Capital Venture Acquisition III (NY, USA). The deal valued Addimmune at approximately USD$500 million. As part of the transaction, an affiliate of the investment bank Cantor Fitzgerald (NY, USA) committed USD$50 million in a concurrent deal. The merger also included up to USD$300 million in potential future payments tied to various development milestones. The combined company is expected to trade under the ticker symbol “HIV” on the NYSE upon completion of the merger, anticipated in the first quarter of 2024 [5].

Read more of Joseph’s columns here:

• The Alchemy of Biosimilars: The Dawn of a New Epoch
• The US Blueprint for Pharma Growth: Gene Therapy, AI and Biosimilars

In September 2024, Medera (MA, USA), a gene therapy biotechnology company, announced plans to go public through a merger with Keen Vision Acquisition (NY, USA), a SPAC. The transaction will provide Medera with capital to support the development of its clinical and preclinical pipeline, particularly its Sardocor unit, which has three adeno-associated virus-based cardiac gene therapies in phase I/IIa trials. Among them is SRD-001, targeting heart failure with reduced ejection fraction.

The reverse merger includes a USD$22.6 million commitment from Medera’s founders and key shareholders, and USD$149.5 million in capital from Keen Vision (OR, USA). The deal gives the combined entity an implied initial enterprise value of USD$622.6 million. The merger is expected to close in Q4 2024, contingent on Medera securing at least USD$40 million in available liquidity. The capital infusion is intended to accelerate development and bring Medera’s gene therapy candidates closer to patients with significant unmet medical needs [6]. These examples highlight how SPACs have become a viable alternative for cell and gene therapy companies seeking to access capital markets.

In 2020 alone, 28 SPACs targeting acquisitions in the US healthcare sector collectively raised more than USD$4 billion. As Max H Bazerman (Professor at Harvard Business School) and Paresh Patel (founder of Natural Order Acquisition Corporation; MA, USA) noted:

“SPACs have allowed many companies to raise more funds than alternative options, propelling innovation in a range of industries. They offer investors and targets a new set of financing opportunities that compete with later-stage venture capital, private equity, direct listings, and the traditional IPO process [7].”

A growing market and future outlook

The CGT market continues to expand. Scott Gottlieb, former Commissioner of the US Food and Drug Administration, remarked:

“By 2025, we predict that the FDA will be approving 10 to 20 cell and gene therapy products a year based on an assessment of the current pipeline and the clinical success rates of these products [8].”

As the field grows, SPACs will play an increasingly important role in funding and supporting the next generation of CGTs. The future will show which investment strategies bring the most value to patients, society and shareholders.

About the author:

Joseph Pategou has authored over 30 articles in esteemed journals such as Cell and Gene Therapy, The Indian Economist, Labotech.eu, Drug Discovery & Development and others. A former consultant at Boston Consulting Group (MA, USA) in New York, he has held and continues to hold operational roles in biopharma companies. The views expressed are his own. He holds an MBA from New York University (USA) and a master’s degree from HEC Paris (France). You can connect with and follow him on LinkedIn, Instagram, or Twitter.

Sources

1. KPMG. Why so many companies are choosing SPACs over IPOs. (2021): https://advisory.kpmg.us/articles/2021/why-choosing-spac-over-ipo.html [Accessed August 2025].
2. Celularity. Celularity closes merger with GX Acquisition Corp and provides corporate update. (2021): https://celularity.com/celularity-closes-merger-with-gx-acquisition-corp-and-provides-corporate-update/ [Accessed August 2025].
3. Business Wire. Jasper Therapeutics and Amplitude Healthcare Acquisition Corporation announce merger to create a publicly listed leading biotechnology company in hematopoietic stem cell transplantation. (2021): https://www.businesswire.com/news/home/20210506005725/en/Jasper-Therapeutics-and-Amplitude-Healthcare-Acquisition-Corporation-Announce-Merger-to-Create-a-Publicly-Listed-Leading-Biotechnology-Company-in-Hematopoietic-Stem-Cell-Transplantation [Accessed July 2025].
4. Business Wire. GreenLight Biosciences announces business agreement with Environmental Impact Acquisition Corp. to become publicly traded company. (2021): https://www.businesswire.com/news/home/20210810005548/en/GreenLight-Biosciences-Announces-Business-Agreement-With-Environmental-Impact-Acquisition-Corp.-to-Become-Publicly-Traded-Company-Allowing-It-to-Better-Harness-Its-Breakthrough-Platform-to-Develop-and-Produce-RNA-for-Human-Therapies-and-Agriculture [Accessed August 2025].
5. Biopharma Dive.. Addimmune to go public via SPAC in HIV cell therapy push (2024): https://www.biopharmadive.com/news/addimmune-spac-merger-hiv-cell-therapy/690572/ [Accessed July 2025].
6. Fierce Biotech. Medera looks back at the SPAC way for gene therapy biotech to go public. (2024): https://www.fiercebiotech.com/biotech/medera-looks-back-spac-way-gene-therapy-biotech-go-public [Accessed August 2025].
7. Harvard Business Review. SPACs: What you need to know. (2021): https://hbr.org/2021/07/spacs-what-you-need-to-know [Accessed August 2025].
8. U.S. Food and Drug Administration. Statement from FDA Commissioner Scott Gottlieb, M.D., and Peter Marks, M.D., Ph.D., director of the Center for Biologics Evaluation and Research on new policies to advance development of safe and effective cell and gene therapies (2018): https://www.fda.gov/news-events/press-announcements/statement-fda-commissioner-scott-gottlieb-md-and-peter-marks-md-phd-director-center-biologics [Accessed July 2025].