Sector Snapshot - Key Trends in Dealmaking - Emerging Healthcare & Life Sciences

Sector Snapshot: Key Trends in Dealmaking Emerging Healthcare & Life Sciences | 7 2024 4 , emerging healthcare companies’ prospects may vary considerably by segment. Incumbent pharma giants will likely drive increasedM&A volume as patent cliffs approach and economic concerns ease, while the recovering median in capital raised prior to going public indicates that firms are amassing resources to do so if necessary, with the option to also extend as private growth ramps further. IPO volume for emerging healthcare companies peaked from 2019 to 2021. 2023 was a year of stabilization for the industry, with a larger acceleration towards the end of 2023 and early 2024. Recent all-time highs in indexes could encourage some companies to prepare for going public. However, as biotech’s performance remains somewhat uneven, barring a recent rise in the Nasdaq Biotechnology Index as of early March 4 “Nasdaq Biotechnology Index,” MarketWatch, n.d., accessedMarch 12, 2024. M&A remains a critical exit route in choppier markets Global VC exits by type (#) – Emerging Healthcare & Life Sciences 2013 2018 2015 2020 2023 2014 2019 2016 2021 2024* 2017 2022 800 700 600 500 400 300 200 100 0 Acquisition Buyout Public Listing *As of 02/23/2024. Source: PitchBook. After record-breaking tallies , IPOs dwindle to a trickle Global VC exits by type ($B) – Emerging Healthcare & Life Sciences Acquisition Buyout Public Listing 2013 2018 2015 2020 2023 2014 2019 2016 2021 2024* 2017 2022 $250 $200 $150 $100 $50 $0 *As of 02/23/2024. Source: PitchBook. 2023 saw a rebound in arsenals of capital raised prior to listing Global VC raised ($M) prior to public listing – Emerging Healthcare & Life Sciences Median Average 2018 2015 2020 2023 2014 2019 2016 2021 2017 2022 2013 2024* $300 $250 $200 $150 $100 $50 $0 *As of 02/23/2024. Note: the population size for 2024* is n = 8. Source: PitchBook.