Allergy Drugs Are Drawing a Surge of Trials and Fresh Funding

Allergies have never gotten much attention from drug developers—for decades, treatments have been limited to the same handful of antihistamines and steroid sprays. But a new wave of therapies is making its way through clinical trials, and pharma companies are starting to take notice.

According to investment banking firm Stifel’s latest biopharma update, more than 160 allergy and immunology drugs are in development, with a record number of late-stage clinical trials underway. Among the disease categories the firm analyzed, allergy biotechs saw their average enterprise value climb the second highest in 2025, rising 72 percent to $1.35 billion. That gain outpaced obesity, one of the hottest areas in drug development, and ranked second only to RNA therapies.

The growing interest is due to a global increase in allergies, as well as advances in personalized medicine and immunotherapy. Analysts say this flood of activity signals a renaissance for the field, where patients have long relied on decades-old options such as antihistamines and steroids.

“The treatment landscape is evolving, with emphasis on immunotherapy and biologics for severe allergic conditions,” according to a Research and Markets report. “The global market for allergy diagnostics and treatment is projected to grow from $67.8 billion in 2025 to $96.4 billion by the end of 2030.”

New “First” Treatments

After years without new options, the FDA began clearing new classes of allergy treatments in 2014, starting with the first sublingual immunotherapy tablets for seasonal rhinitis, or hay fever. For food-based allergies, the agency approved the first therapy to mitigate reactions to peanut exposure in 2020, followed by an approval in 2024 for the first drug that reduces reactions to multiple foods. On the respiratory side, a drug was approved in 2021 that hits a new target for severe asthma.

Skin allergies have also become a focus for innovation, with the past several years bringing the first targeted biologics and non-steroidal creams for eczema and atopic dermatitis.

A search on ClinicalTrials.gov shows more than 180 active late-stage clinical trials focused on allergies, spanning everyday allergies like peanut, milk, and dust mite. Companies are testing a range of approaches, from traditional drugs and biologics to patches and devices.

Deals, Financing, and Expansions

Beyond clinical research, companies are raising funds and making acquisitions in the space this year. DBV Technologies raised more than $300 million this spring to support its U.Sg launch plans for its peanut allergy patch, while Swiss biotech Mabylon secured $34 million to advance an antibody program targeting food allergies. Larger players are also making moves: Sanofi acquired Blueprint Medicines for $9.5 billion, to expand its immunology portfolio into conditions that overlap with allergy care.

Public funding is also helping to push the field forward. In June, the Food Allergy Science Initiative (FASI) was tapped to join a new federal program under ARPA-H, the government’s health innovation agency. The move connects the group to potential grant money and a national network of researchers and startups, with the goal of speeding up new food allergy treatments from the lab to patients.

FASI notes that worldwide, food allergies affect as many as 520 million people, and in the U.S., a food-allergic reaction sends people to the ER every three minutes.

“In the medical community, there is a fundamental lack of understanding of how these allergies develop and why they are increasing,” FASI says on its website. “Comprehensive, cross-discipline research is the key to developing a cure.”