H1 2024 Life Sciences Update Market Summaries

Philadelphia HUB MARKET

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Market Summary

Public & Private Funding (2024 1H)

Rent vs. Vacancy Comparison

Fast Lab Stats

• Macroeconomic pressures have caused companies to preserve cash runway, which limits tenant mobility and keeps the focus on advancing research. Activity has been mostly limited to shared/co-lab facilities in 2024, even as quality lab space remains available, including second generation lab and sublease availabilities. Despite existing move-in ready and shell condition opportunities for purpose-built labs, companies are prioritizing research. • Phase 2 and 3 clinical trials accounted for 72.0% of completed trials in the first half of 2024 and for 64.0% of the total trials started in the first half of the year. Phase 4 clinical trials accounted for only 5.0% of all completions and 6.0% of all clinical starts. Of the Phase 4 clinical trials that completed YTD, the average time of study was five years, which reinforces the strategy to preserve limited cash runway in the near to midterm. • Pioneered in Philadelphia, mRNA technology presents a budding future for Philadelphia’s life sciences ecosystem. As evidenced by the Covid-19 vaccine, mRNA technology has incredible potential in the development of new vaccines against a wide range of pathogens and various types of cancer. Great potential is foreseen in using RNA splicing to correct genetic disorders. • The protection of homegrown emerging technology, like mRNA, has captured legislative attention. Pending legislation, like the U.S. Biosecure Act, is a response aimed at prohibiting engagement with biotech “companies of concern.” If passed, it could directly impact CDMO operations in Philadelphia and induce companies to capitalize on the strong existing biomanufacturing infrastructure

Company

Deal Type

Completed VC Round $ Raised (MM)

21.4 MSF Market Square Footage $53.53 $ Per SF 5.2% Vacancy 50.3K Total Life Sciences

$60

8%

Synnovation Therapeutics

Early Stage VC

Jan 2024 3rd Round

$102.0

$50

6%

Context Therapeutics Private Placement

May 2024 N/A

$100.0

$40

Vacancy Rate

Latus Bio

Early Stage VC Early Stage VC Later Stage VC Later Stage VC Later Stage VC

May 2024 1st Round Jun 2024 3rd Round Mar 2024 5th Round Jan 2024 5th Round Jan 2024 6th Round Jun 2024 3rd Round Feb 2024 1st Round Jan 2024 4th Round

$54.0

$30

4%

Interius

$51.4

Imvax

$34.0

$20

2%

Cagent Vascular

$28.7

$10

Proscia

$9.0 $4.9 $4.9 $4.8

Average Asking Rent $/sf

$0

0%

NexEos Bio

Seed Round Seed Round

Employment 20.7% Life Sciences Employment 10-Year Growth Rate

2015 2017 2019 2021

2023

Prolocor

Asking Rents

Overall Vacancy

Sublease Vacancy

SFA Therapeutics

Later Stage VC

Representative Life Sciences Companies

Life Sciences Labor: Average Monthly Job Postings and Hires

Representative Lease Transactions (2024 1H)

Company

Type

Company

Address

Size (SF) New/Renewal

Type

Quarter Landlord

1,400

Main Street Capital

DSM Biomedical

400 Devon Park Drive 9 Great Valley Parkway 727 Norristown Road

77,000 New

Lab

Q1

AstraZeneca Century Therapeutics Amicus Therapeutics

North America HQ

1,200

EQT Exeter

Endo Pharmaceuticals

58,700 Sublease

Office

Q2 Q2

Research Facility/HQ

1,000

Code Bio

23,000 New 1,000 New 2,000 New

Lab/Office

Beacon Capital

Research Facility GlaxoSmithKline Research Facility J&J/Janssen Research Facility/ Regional HQ Teva Pharmaceuticals Research/US HQ Endo Research Facility Merck Research Facility/HQ Incyte Research Facility/HQ

Third Arc Bio

3675 Market Street

Lab Lab

Q1 Q1

Cambridge Innovation Center

800

Nava Therapeutics

2929 Arch Street

B.Labs

600

400

200

0

2020 2021

2022

2023

2024

Hires Unique Postings

Roche/Spark Therapeutics

HQ/Research Facility/Manufacturing

Top NIH-Funded Institutions (2020-2024 1H)

Bio Degree-Awarding Institutions, Metro Area • Drexel University • Temple University • University of Delaware • University of Pennsylvania • St. Joseph’s University - University of the Sciences

Annual Life Sciences Degree Completions

$3.0B University of Pennsylvania $694M

$367M Temple University

2013 4,164 2023 5,173 Up 24%

Research Contributors Michael Hanes Michael.Hanes@cushwake.com

Children’s Hospital of Philadelphia (CHOP)

Sources: Cushman & Wakefield Research, CoStar, National Institutes of Health (NIH), Lightcast, Pitchbook

CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2024 FEBRUARY