Life Sciences Update | 2022 October

Future Demand

Seed and Early-Stage Companies Attract Capital

Clinical Trials by Stage

Seed and Early-Stage Funding

Top 10 Markets

Phase 4 4%

Early Phase 1 1%

Generating Revenue Startup Pre-Clinical Trials Clinical Trials Other

Other 4%

20% 30% 40% 50% 60% 70% 80% 90% 100%

Clinical Trials 7%

Phase 1 11%

Pre-Clinical Trials 13%

Phase 1 | Phase 2

Phase 3 40%

Generating Revenue 51%

Phase 2 31%

0% 10%

Startup 25%

Phase 2 | Phase 3

Source: PitchBook Data, Inc.; *Data has not been reviewed by PitchBook analysts.

Source: Clinicaltrials.gov

For the markets tracked by Cushman & Wakefield, 50% of the life sciences VC deals through August 2022 involved a seed or early-stage deal, with the average deal size of $38 million. Of these deals, 38% included companies that are at a startup or pre-clinical trials business stage. Many of these companies are in the early growth stages as they seek to accelerate their platform, which can include the expansion of their existing lab and office footprint.

Among the top 10 markets that attracted the greatest flow of funds into seed and early-stage deals, capital was significantly focused on revenue generating companies in Boston, Raleigh / Durham, Philadelphia and Greater Los Angeles. In the San Francisco Bay area, Seattle and London, funding was largely focused on startups. In New Jersey, the pharmaceutical hub of the U.S., funding flowed mainly to companies focused on clinical trials.

Another indicator of CRE growth and demand among life sciences companies is clinical trials activity. Currently, there are approximately 63,000 active clinical trials among the markets tracked by Cushman & Wakefield. Just over half of these trials are in the early to Phase 2 stages, which include exploratory trials, safety trials and short-term adverse events. Clinical trials in Phase 3 make up 40% of all trials and are focused on further studies of a drug’s safety and effectiveness, as well as interactions with other drugs. Life sciences companies at any stage of clinical trials may be in a position to expand into more space depending on the requirements of their trials, however, Phase 3 trials generally include larger groups of participants, which would typically require a larger staff headcount and space. Phase 4 clinical trials are conducted post-FDA approval for marketing.

15 / CUSHMAN & WAKEFIELD

LIFE SCIENCES UPDATE | 2022 OCTOBER