Biopharma Private Placement Insights (Q3'23)

• Based on current run rate, 2023 is on pace for ~300 deals with a total deal value of ~$17.2B (vs 327 deals and $18.4B in 2022)
• Private markets remain robust compared to pre-pandemic in terms of total deal value (2019: $13.1B, 2018: $14.0B)
• Median quarterly deal value is in-line with 2022 ($4.5B vs $4.4B) and ahead of pre-pandemic median ($4.5B vs $3.2B)
• Median quarterly deal count is slightly below 2022 (76 vs 84 deals) but is well ahead of pre-pandemic median (76 vs 66 deals)
• 60% of Series Bs are led by new investors while only 37% of Series Cs are led by new investors
• Number of extension rounds has increased from 1H 2023 to Q3 and we expect this trend to continue in Q4
• Oncology attracted the largest share of VC dollars but CNS, I&I and Autoimmunity, and CV are chipping away at Oncology
• Despite the IRA, small molecules are still a favored treatment modality among VC investors
• Preclinical-stage companies make up the majority of YTD 2023 private placement deals
• Series B valuations remained rather resilient in YTD 2023 while Series C valuations bounced back to some degree from their 2022 low
• The typical biotech funds remained active in 2023 (ARCH, RA Capital, Orbimed, Invus, Bain Capital, Surveyor, Wellington, T. Rowe, Fidelity, TCGx etc)

• At the current run rate and with ~40 upcoming PDUFA dates lined up, we anticipate 2023 drug approval figures to exceed historical median
• Oncology, CNS and Infectious Disease indications are leading YTD 2023 drug approvals
• Biologics are on the rise as modalities beyond antibodies begin to gain prominence

• Heightened risk may press investors to be more circumspect about allocation of capital
• Companies will need to be more thoughtful about indication expansion strategies
• However, in spite of speculation about the legislation’s cataclysmic effects, its long-term industry impact remains to be seen

Please reach out to Michael Margolis, R.Ph. (MichaelA.Margolis@opco.com), Daniel Parisotto, PhD (Daniel.Parisotto@opco.com), Zelyn Kwok (Zelyn.Kwok@opco.com), or Ken Stier (Ken.Stier@opco.com) directly to request a copy.