Life Sciences Update | 2022 October

Flow of Funding

Global Life Sciences Venture & Public Offering Capital Venture Capital

Public Offerings

North America

Europe

APAC

North America Europe APAC

$18

$50

$45

$16

$40

$14

$35

$12

$30

$10

$25

$8

Billions

Billions

$20

$6

$15

$4

$10

$2

$5

$0

$0

2010 2011

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: PitchBook Data, Inc.; *Data has not been reviewed by PitchBook analysts, 2022 as of June 30

North American private equity (PE) funding totaled $23.6 billion through June 2022, down 15% YoY. A dearth of life sciences initial public offerings (IPO) totaled $1.1 billion, a significant drop from $9.1 billion for the first half of 2021, but similar to first half of 2017 levels. Other global regions have also experienced a drop in venture capital (VC) funding and IPOs. VC funding in major European markets totaled $3.5 billion in the first half of 2022, down 42% YoY and IPO activity was muted at $65 million, significantly lower than the $2.4 billion offerings from the same period last year. APAC saw slightly less deceleration with VC funding totaling $8.2 billion, a 25% drop YoY and IPO volume at $2.7 billion, down 53% YoY. Low IPO activity in the first half of 2022 can be attributed to volatility in the overall equities market which impacted the life sciences sector. As biotech share prices fell from 2021 highs,

companies put their IPO plans on hold as they wait for more market visibility. Prices have recently rebounded slightly and are currently at pre-pandemic levels. Although life sciences VC funding levels fell on a YoY basis, some markets saw higher funding activity. The San Francisco Bay area (+83%), New Jersey (+76%), Raleigh / Durham (+42%) and Montreal (+15%) all experienced increased VC funding in the first half of 2022. Looking at individual deal activity, the two largest deals that transacted in 2022 include Altos Labs’ $3 billion and Ultima Genomics’ $600 million funding. Both of these companies are headquartered in the San Francisco Bay area.

12 / CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2022 OCTOBER