2023 September Life Sciences Update

Despite Share Price Volatility, 2022 Biotech Revenues Were at Peak Levels

› Biotech, one of the fastest growing segments in life sciences is an indicator of growth for the sector. › The run-up in biotech pricing through 2021 added a significant amount of liquidity to the life sciences sector. However, the steep fall in prices through midyear 2022 put a lot of biotech companies in a cash crunch. › Pricing is currently above pre-pandemic levels, demonstrating continued pricing growth. However, pricing is lagging the three-year average and significantly behind the linear trendline, leaving room in the market for price growth. › Public biotech revenue has ballooned to over $167 billion in 2022, with an impressive annual growth rate of 12%. › Commercial leaders dominate revenue and on average account for 83% of total annual revenue over the last 22 years. › In 2022, commercial leader revenue share increased to 89% with a YoY growth of 3%. Although emerging leaders have gained revenue share, growth dropped 20% YoY as smaller companies struggled.

Markets Saw Less Price Volatility in 2023

U.S. Public Biotech Company Revenues, 2000-2022

180

6000

160

5000

140

Biotech Share Prices Are at Five-Year Average

4000

120

100

3000

80

2000

60

Revenue ($billions)

1000

40

20

0

0

Biotech - Share price, (Index 1-Nov-1993=200, NSA)

Key Takeaway: Headwinds increased uncertainty in the biotech sector, but underlying fundamentals continue to fuel growth.

1/4/2010

1/4/2011

1/4/2012

1/4/2013

1/4/2014

1/4/2015

1/4/2016

1/4/2017

1/4/2018

1/4/2019

1/4/2020

1/4/2021

1/4/2022

1/4/2023

Daily

3 Year Avg 10 Year Avg

US commercial leaders US emerging leaders

5 Year Avg

Linear (Daily)

Source: EY analysis 2023, Cushman and Wakefield Research Note: Commercial leaders are companies with revenues at or above $500 million

Source: The Nasdaq Stock Market, Inc. (NASDAQ), Cushman & Wakefield Research

22 / CUSHMAN & WAKEFIELD

LIFE SCIENCES SEPTEMBER 2023