2023 September Life Sciences Update

Various Funding Sources Drive Clinical Trials in the U.S.

› Despite a decidedly slow VC funding environment, clinical trials continue to be initiated as the life sciences sector continues to build on underlying drivers of growth. › While not all this funding is focused solely on clinical trials, there is a clear relationship between the number of clinical trials and total funding in the market. › Much of the research and development funded by these three major sources has the potential to move into clinical trial stages. › Through the first half of 2023, there have been 4,512 clinical trials initiated.

Funding by Source and Clinical Trials by Year of Initiation

US VC Funding Pharma R&D (Domestic)

NIH US Clinical Trials

12

$180

10

$150

8

$120

6

$90

Key Takeaway: A decline in VC funding has not slowed clinical trial activity. Current activity is on pace to near 2022 levels, as the sector has varied sources of funding from which to draw.

Funding (In Billions)

4

$60

2

$30

Number of Clinical Trials Initiated (In Thousands)

0

$0

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

Source: Clinicaltrials.gov, Pitchbook, NIH, Statista

23 / CUSHMAN & WAKEFIELD

LIFE SCIENCES SEPTEMBER 2023