Life Science: Great Promise & Rapid Growth

Funding In 2018, a record $16.2 billion was invested by venture capital companies into the healthcare sector, up from the previous record $14.3 billion invested in 2017. Since 2012, the amount of venture capital invested in this sector has more than doubled. VENTURE CAPITAL INVESTMENT TARGETING LIFE SCIENCE

$10.0 $12.0 $14.0 $16.0 $18.0

$16

$14

$12

$12

$11

$10

$10

$0.0 $2.0 $4.0 $6.0 $8.0

$8

$8

$7

$7

$7 $7

$7

Billions

$7 $6

$6

$6

$5

$4

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Source: PwC/CB Insights MoneyTree™ Report, Cushman & Wakefield Research

The amount of venture capital investment indicates that there are a growing number of private companies developing products in the life science sector. But an equally important source of research funding in the sector is the National Institutes of Health (NIH). The NIH is the primary federal government agency charged with conducting and supporting biomedical and behavioral research. NIH provides grants to support research at university and medical research centers across the U.S. According to the Congressional Research Service, NIH funding has increased from $11.0 billion in 1994 to $37.3 billion in 2018 and is projected to reach $39.3 billion in 2019. Taken together, total investment in life science in the U.S. has surged in the current expansion. Since 2013 total research funding has increased by 44.1%, or 7.6% per year, more than three times as fast as the annual growth rate recorded in the previous 13 years. TOTAL LIFE SCIENCES RESEARCH FUNDING: VENTURE CAPITAL INVESTMENT PLUS NIH FUNDING

$53.44

$52.0

$47.0

$42.0

$37.0

$37.09

$32.0

Billions of Dollars

2013-2018 +44.1%

$27.0

$22.0

$17.0

$12.0

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

Source: National Institutes of Health, PwC/CB Insights MoneyTree™ Report

6  CUSHMAN & WAKEFIELD