摩根大通 2024 年第二季度美国生物制药授权许可与风险投资报告 2024 Q2 U.S. Biopharma Licensing and Venture Report

Q22024U.S.Biopharma

LicensingandVentureReport

July2024

Fueledby

DEALFORMA

STRICTLY

CONFIDENTIAL

Executivesummary

Parameters

Biopharmacompaniesaredefinedasfirmsdevelopingtherapeuticsandtechnologyplatformsengagedindrugdiscovery,clinicalR&Dandcommercialization.

Medtechcompaniesaredefinedasfirmsdevelopingmedicaldevices,diagnostics,therapeuticdigitalhealthandcommercialresearchtools.HealthcareITandpayer/providersoftwareareexcluded.

Therapyareas,developmentstages,modalitiesanddealstructuresaresegmentedpertheDealFormadatabase.

FinancialsarebasedondisclosedfigurescuratedbyDealForma.MultipletranchesofthesameSeriesarecountedasonetogether.

Dataasof6/30/2024

Biopharmaventureinvestmentsthroughthefirsthalfof2024aresignalingareturntoannualgrowthalongsideanincreasinglyreliableexitenvironment

Biopharmadealandfundingactivitycompletedthefirsthalfof

2024withgrowthsignalsacrossbothquarterlyand

annualizedmetrics.Ventureinvestmentsreturnedwithhigh-dollarroundsinQ2topourfundsintobiopharmaandplatform

research,regardlessofthecompany'sclinicalstatus.M&AactivitymaintaineditshealthypaceastheIPOmarket

continuedtoopenincrementallywider.

Licensingdealscontinuedtoseealargerportionofdealvalue

shiftingtomilestonesinordertode-riskpartnership

economicsforbuyers.Upfrontpaymentsmakeonly6%of

totalannounceddealvaluesacrosstheboardonanotherwisedealvalue—anotablebigpharma-friendlytrendsince2020.

HereareafewhighlightsfromourQ22024report:

•Ventureinvestmentintherapeutics:$7.6billionacross

107biopharmaventureroundsinQ22024.Thisfollowed$6.5billionin107roundsinQ12024tobeatboth

respectivequartersin2023.

•Biopharmalicensingpartnerships:$76.3billionin

licensingtotaldealvalueswereannouncedinH12024to-datewith6%ofthatinupfrontpayments.

•M&A:BiopharmaM&Asaw26acquisitionsinQ22024totalingover$17.9billionforanincreasingshareofsmall-capbiopharmacompanies.

•IPOs:$1.9billionacross10biopharmaIPOscompletedonNASDAQandNYSEinH12024with3oftheseinQ2.

J.P.Morganiscommittedtoyoursuccess.Ourrelationships,ourcapitalandourskilledteamofbankersandspecialists

dedicatedtothelifesciencesandhealthcaresectorsreflect

ourconvictioninthepivotalcontributionstheseclientsaddtotheirstakeholders—society,shareholdersandemployeesalike.

Ourbankers’expertiserangesfromadvisingcompaniesattheearlieststageofformationtothemostgraduated,complex

M&Aandcapitalmarketstransactions.Regardlessofthesizeorstageofyourcompany,weareprepared,equippedand

enthusiasticaboutadvisingandenablingyoutomeetyourstrategic,financialandtechnicalobjectives.

Thankyoufortakingthetimetoreadthisreport.Welookforwardtosupportingyou.

KathrynMcDonoughHeadofLifeSciences

InnovationEconomy,CommercialBankingJ.P.Morgan

SkipKelly

HeadofHealthcareVCCoverage

InnovationEconomy,CommercialBankingJ.P.Morgan

DEAFORMA

2

Biopharmaventureinvestmentdollarsincreasedagaininthesecondquarter

Ventureinvestmentsintobiopharmatherapeuticsand

discoveryplatformcompaniesrosequarter-over-quarterinQ22024.Thiswasonfewerrounds,however,aslarger

investmentswentintofewercompanies.Venture

investmentconcentratedonthemostpromising

therapeuticareasandde-riskedlater-stageprograms.

•$7.6billionwasraisedinprivatefundingroundsinthesecondquarterof2024across107investments.Q1andQ2eachbeatrespectivepreviousquartersin

dollarvalue.

•Venturedollarvolumethroughthefirsthalfof2024issignalinganestimated$28.2billionforthefullyeartobreakatwo-yeardown-trend.

•Atthepeakin2021,biopharmasaw$43.8billionacross750venturerounds.

•Interestrateshaveplateaued,andJPMeconomists

nowexpecttoseethefirstratecuteinSeptember

2024(asopposedtoNovemberpreviously).Rates

havecorrelatedwithdealactivityinthepast,sowe

mayseebiopharmadealandfundingactivityincreasethroughthesecondhalfof2024.

Source:

DealF

database;Fedrate:

Financialsbasedondisclosedfigures.Datathrough6/30/2024.

BiopharmaTherapeuticsandDiscoveryPlatformsDealActivityvs.FederalFundsRate

TotalDealActivity($B)

FederalFundsEffectiveRate

6.00

TotalAmountRaised($B)NumberofRounds

750

$43.8

642

Q4,$9.5

541

$32.2

$28.2428

Est.

214

$8.2

$6.7

Q1,$13.8

$6.0

$18.4

$4.9

$4.6

$3.6

$5.3

$27.9

$5.4

$5.0

$6.1

$7.6

$6.5

$4.8

$6.9

Q2,$10.3

Q3,$10.3

$11.4

$23.4

$9.0

$9.1

$5.1

463

450

●

20192020202120222023H1'24

$50.0$45.0$40.0$35.0$30.0$25.0$20.0$15.0$10.0 $5.0 $0.0

5.00

4.00

3.00

2.00

1.00

0.00

201920202021202220232024

DEAFORMA

3

Despitedownwarddealcounttrend,megaroundsarestillprevalentin2024

Themostpromisingandclinicallysuccessfulpipeline

programscontinuetoattractthehighestvalue,buttherearefewerofthem.

•Since2021,thenumberofventuredealshasdeclinedYoY(assumingH1’24repeatsitsvolumefortherestoftheyear).

•50biopharmacompaniesraisedventureroundsof$100millionormoreinthefirsthalfof2024.

•14licensingdealsinthefirsthalfof2024saw$100millionormoreindisclosedupfrontpaymentterms.

•NotableQ22024biopharmaventureroundsover$100millionincludeXairaTherapeutics’$1billionin

committedcapitalannouncedinApril,FormationBio’s$372millionSeriesDinJune,andAltruBio’s$225

millionSeriesBinMay2024.

•ThelargestdisclosedlicensingupfrontcashandequitytermsinQ22024includeNovavax/Sanofiwith$500millionsignedforplatformsprograms,

PeptiDream/Novartiswith$180millionforapeptide-drugconjugateprogram,andArvinas/Novartiswith$150millionsignedatPhaseII.

Source:DealFdatabase

Financialsbasedondisclosedfigures.Datathrough6/30/2024.

Biopharma:TotalNumberofVentureRoundsandR&DPartnership&LicenseDealsbyValueUpfront

NumberofVentureInvestmentsbyRoundSizeNumberofR&DLicensesbyUpfrontSize

<$50M$50M-$99M$100M+

800

<$10M$10M-$99M$100M+

800

700

600

500

400

300

700

600

500

400

300

200

100

0

148

98

80

150

43

102

102

355

309

253

105

50

43

353

251

180

73

94

200

100

0

39

39

29

128

102

114

85

50

61

25

120

39

23

57

56

24

14

11

20192020202120222023H1'24

20192020202120222023H1'24

DEAFORMA

4

SeedandSeriesAinvestmentdollarscontinuedtrendtowardmodestgrowth

SeedandSeriesAfundingintobiopharmacompanies

totaled$5.1billionacross105roundsinthefirsthalfof2024.Amajorityofthatcameinthesecondquarter

throughlargerinitialinvestmentrounds.

•ThelargestbiopharmaseedandSeriesAroundsinQ2

2024includeXairaTherapeutics’$1billionin

committedcapitalandDiagonalTherapeutics’$128million,bothannouncedinApril.Reunion

Neurosciencealsohadanotablefinancingwitha$103millionSeriesAinMay2024.

•Therewasanevensplitbetweenfirst-timeandlater-stagefinancingsasnewcompanycreationcontinued.

Source:DealFdatabase

Financialsbasedondisclosedfigures.Datathrough6/30/2024.

SeedandSeriesAvs.LaterSeriesVentureTotalsinBiopharmaTherapeuticsandDiscoveryPlatforms

TotalofSeriesBandLaterRounds($B) NumberofSeriesBandLaterRounds

TotalofSeedandSeriesARounds($B)NumberofSeedandSeriesARounds

$35.0

$30.0

$25.0

$20.0

$15.0

$10.0

$5.0

$0.0

403$31.6

355

347

287

274

257

250

267

213

193

$14.4

$12.2

105Ser.A

$9.6

$8.7

$4.4

109Ser.B+$9.0

$14.0

$22.6

$19.2

$9.0

$5.1

20192020202120222023H1'24

DEAFORMA

5

Ventureroundmediansincreasedforclinicalstagebiopharmaprograms

Inthefirsthalfof2024,biopharmacompanieswith

theirleadprogramsinPhaseIthroughPhaseIIIsaw

highermedianinvestmentroundsthancompaniesin

otherstages.ThemedianroundforPhaseIIIcompaniesincreasedto$100million.Platformandpreclinical

companiessawsmallerinvestmentroundscomparedtopreviousyears.

•PhaseIbiopharmacompaniesraisedamedianroundof$76millionin2024throughQ2,morethan

doublethefigurefrom2023.

•40companiesdisclosedPhaseIfundingroundsinH12024rangingfrom$2millionto$260million(ApolloTherapeuticsSeriesC).Therewere16

roundsat$100millionormore.

•PhaseIIIbiopharmacompaniessaw$100millioninventureroundmediansthroughQ22024,morethandoublethefull-year2023median.

•7companiesdisclosedPhaseIIIfundingroundsinH1

2024rangingfrom$11millionto$372million(FormationBioSeriesD)

Source:DealFdatabase

Financialsbasedondisclosedfigures.Datathrough6/30/2024.

BiopharmaTherapeuticsandPlatforms:MedianVentureRoundsbyCompanyStageatFunding

$120

$100

$80

$60

$40

$20

$0

MedianDollars($M)

Platform

Preclinical

PhaseI

PhaseII

PhaseIII

$49$46

$35$30$32

$25

$40$26$27

$25

$30

$24

$76

$47$46

$35$35$27

$44$45$36

$25

$50$50

$100

$70

$73

$70

$48$48

2019

2020

2021

2022

2023

H1'24

2019

H1'24

2019

H1'24

2019

H1'24

2019

H1'24

DEAFORMA

6

Licensingdealupfrontpaymentsrepresentonly6%oftotalannounceddealvalues

Despitebiopharmalicensingandpartnershiptotal

announceddealvaluesholdingsteadywhiledealactivitydroppedsince2020,theshareofupfrontpayments

declinedsignificantly.Alargershareofdealvaluehasbeenpushedtomilestonesasin-licensingpartners

mitigatedealeconomicrisk.

•6%ofthe$76.3billioninbiopharmalicensingtotalannounceddealvalueinthefirsthalfof2024wasinupfrontpayments,downfromthe2019peakof13%.

•Milestoneshavebeenmakingupagrowingshareofannounceddealtotals,withthelargestportionoftencomingfromsales-basedmilestonesacrossmultiplepotentialprograms.

Source:DealFdatabase

Financialsbasedondisclosedfigures.Datathrough6/30/2024.

BiopharmaTherapeuticsandPlatforms:R&DLicensingTotals($B)andPercentageUpfront

TotalDealValue($B)TotalUpfrontPercentofTotalDealValue$200.0

$180.0

$160.0

$140.0

$120.0

$100.0

$80.0

$60.0

$40.0

$20.0

$0.0

UpfrontShareofTotalDealValue

13%

12%

$119.5

8%

7%

6%

$152.6Est.

6%

$76.3

$76.5$78.8

$181.3

$181.9

$174.6

$174.4

$119.1

$76.3

14%

11%

10%

8%

201520162017201820192020202120222023H1'24

DEAFORMA

7

Biologicsandsmallmoleculesleadearly-stageinvestmentandlicensingdealvalues

Thetopbiopharmamodalitiesforinvestmentand

licensingdealflowcontinuetobebiologicsandsmall

molecules,followedbymoreadvancedmodalities.BothventureinvestmentsatseedtoSeriesAandlicensingupfrontpaymentstrackedhigherfrom2023toH1

2024inthetoptwomodalities.

•$4.4billioninseedandSeriesAinvestmentsweremadeintobiologicsfrom2023toH12024withamedianroundsizeof$22million.

•$122.8billionintotalannounceddealvalueforbiologicsfrom2023toH12024withamedianupfrontpaymentof$45million.

Source:DealFdatabase

Financialsbasedondisclosedfigures.Datathrough6/30/2024.

TopBiopharmaModalities:SeedandSeriesAVentureRoundsandTotalAnnouncedLicensingDealValue

$4,364$2,169

$3,344$2,142

Biologics,

Antibody,DNA,RNA,Protein,etc.

SmallMolecule

CellTherapy

GeneTherapyandVectors

Immunotherapy

Gene

Editing/CRISPR

TopModalities

Seed-SeriesA($M)

TotalAmountRaised2023-2024YTD($M)TotalAmountRaised2022($M)

$874$823

$975$614

$690$769

$60

$452

$47

$45

$60

Median2023-2024YTD($M)Median2022($M)

$22

$30

$27$22

$23$24

$34

$40

$7

$45

$29

$54

$95

$65

$46

$34

$35

$21

$12

$27

$69.3

$10.3$18.5

$6.7$10.6

$11.0$11.6

$22.5$17.4

$2.7$2.6

TopModalities

TotalLicensingDealValues($B)

MedianUpfront2023-24YTD($M)MedianUpfront2022($M)

TotalDealValue2023-2024YTD($B)TotalDealValue2022($B)

$122.8

Biologics,

Antibody,DNA,RNA,Protein,etc.

CellTherapy

$136

Gene

Editing/CRISPR

GeneTherapyandVectors

Genomics,

Sequencing,

Screening,etc.

Immunotherapy

DEAFORMA

8

Bigpharmain-licensinghaspushedmorevaluetoPhaseIIIprogramsclosertoapproval

In-LicensingbyBigPharma:MedianUpfrontCash&EquitybyStageatSigning.2022toH1’24

20222023H1'24MedianUpfrontCash&Eq.($M)

PreclinicalPhaseIPhaseIIPhaseIII

$310

DiscoveryPlatform

$350

$300

$250

$200

$200

$150

$100

$100

$100

$75

$75

$55$41

$73

$70$47

$70

$50

$45

$40

$50

Large-capbiopharma(marketcapof$50billion+)are

focusedonin-licensinglater-stageclinicalcompoundstofillpipelineswiththerapiesclosetoapproval.Theshifttolater-stageclinicalprogramsleftPhaseIIandearlier-stage

companieswithsmallermedianlicensingupfrontpaymentsinH12024.

•Medianupfrontcashandequitypaymentsfrombig

pharmaweredownforPhaseIIandearlier-stagedealssignedinH12024to$73millionforPhaseII,$50

millionforPhaseI,$47millionforpreclinical/IND,and$41millionfordiscoveryplatformprograms.

•30PhaseIIIdealsweresignedinH12024withthe

largestdisclosedupfrontsincludingIdorsia/Viatris

($350million)andProtagonist/Takeda($300million).

•ThelargestPhaseIIIlicensingdealupfrontinQ22024wasintheAscentagePharma/Takedadealwith$100millionupfrontplusanundisclosedminorityequity

investment.

•DaiichiSankyo/MercksawthelargestPhaseIIupfrontlicensingpaymentat$4billionin2023.

$0

Platform/DiscoveryPreclinical/INDPhaseIPhaseIIPhaseIII

Source:

DealF

database

Financialsbasedondisclosedfigures.Stageofleadassetinmulti-assetdeals.Datathrough6/30/2024.

DEAFORMA

9

Antibodytherapiesdrovebiologicsdealvalueshigher;fewergenetherapydealsinQ22024

Antibody-basedtherapiesandADCscontinuedtoseelargerdealtotalsinthefirsthalfof2024todrivetotalannouncedpartnershipdealvalueshigher.Celland

genetherapydealsdeclinedinaggregatevalueasin-licenseesde-riskedadvancedtherapiesforlonger-

establishedmodalities.

•Biologicslicensingdealvaluesrosefrom$13.9

billioninQ12024to$16.6billioninQ22024.

AntibodyandADCdealsledwithnewdealupfrontsandpotentialpaymenttotals.

•$75billionintotalannounceddealvaluefor

biopharmalicensingdealssignedinthefirsthalfof2024.

•TheDaiichiSankyo/MerckdealannouncedinOctober2023foraPhaseIIADCprogramhasatotaldeal

valueofupto$22billionwith$4billionofthatupfront,drivingtheoutlierperformance.

Source:DealFdatabase

Financialsbasedondisclosedfigures.Datathrough6/30/2024.

R&DPartnershipsforTopBiopharmaModalities:TotalAnnouncedDealValue($B)

$80.0

$70.0

$60.0

$50.0

$40.0

$30.0

$20.0

$10.0

$0.0

$2.4

$13.6

$51.1

$3.2

$5.2

$6.9

$3.3

$10.0

$8.3

$14.8

$12.6

$8.8$13.9

$8.5$16.6

$7.9$13.7

$1.9$6.3

$2.7

Q1'23Q2'23Q3'23Q4'23Q1'24Q2'24

GeneTherapyandVectors

Genomics,Sequencing,Screening,etc.SmallMolecules

Biologics,Antibodies,ADC,DNA,RNA,etc.

DEAFORMA

10

BiopharmaacquisitionactivitypickedupinQ22024

MorebiopharmacompanieswereacquiredinQ22024toreturntotopQ1numbersandreachfortherecentQ42023quarterlypeakinactivity.Dollarvolume

remainssoft,however.Themarketisontracktocompleteabout100M&Atransactionsfor2024.

•26M&AtransactionsforbiopharmatherapeuticsandplatformcompanieswereannouncedinQ22024

totaling$17.9billion.

•Theshareofprivatebiopharmaacquisitionactivityincreasedslightlyoversmallandmid-capbiopharmadealstoaccountforcloseto60%ofallbiopharmaM&A.

•MedianbiopharmaM&AinH12024was$608

million.Thisisdownfrom$680millionfromfull-year2023,thoughaslightlylargersharearenowacquisitionsofprivatebiopharma.

•Notableclinicalstageacquisitionsinclude

Vertex/AlpineImmuneSciencesfor$4.9billionandMerck/Eyebiotechfor$1.3billion.

Source:DealFdatabase

Financialsbasedondisclosedfigures.Datathrough6/30/2024.

BiopharmaM&A:NumberofDeals,TotalDealValue($B),andMedianM&AUpfrontCashandEquity($M)

$60.0$50.0$40.0$30.0$20.0$10.0 $0.0

$56.8

TotalM&ACashNoContingents($B)NumberofDeals

31

$50.5

26

25

23

262126

21

$22.4

22

$28.1

$33.4

14

$16.1

$17.9

$9.9

$13.1

$2.2

MedianM&AUpfrontCashandEquity($M)

$764

$1,000

$608

$710$680

$255

$500

$195

$249

$112

$43

$102

$0

NumberofM&ADealsbyTargetCompanyType

100%

80%

60%

40%

20%

0%

Q1'22Q2'22Q3'22Q4'22Q1'23Q2'23Q3'23Q4'23Q1'24Q2'24

MidCapBioSmallCapBio

PrivateBiopharma

DEAFORMA

11

First-half2024biopharmaIPOactivitysignalsapositivereturnafterasofttwoyears

NASDAQandNYSECompletedIPOsinBiopharmaTherapeuticsandPlatforms:Totals($B)andCount

TotalAmountRaised($B)NumberofIPOs

$18.0

$15.6

$16.0

$14.0

$12.0

$10.0

$8.0

$6.0

$4.0

$2.0

99

$14.8

79

43

$5.3

$2.713

$1.910

$2.4

17

$0.0

Thefirsthalfof2024saw10biopharmaIPOscompleteonU.S.exchangesshowinganearlysignaltoabusyIPOyear.SevenofthesewereinQ12024.

•$1.9billionacross10biopharmaIPOsonNASDAQandNYSEallcompletedinH12024.

•9ofthe10companieshadclinicalprogramsatIPO.

•Thelargest2024IPOsthroughJuneincludeCGOncology($437million),KyvernaTherapeutics

($367million),andAlumis($210million).

Source:

DealF

database20192020202120222023H1'24

Financialsbasedondisclosedfigures.IPOsover$15million.ExcludesKenvue,Inc.(Q22023,$4.4B)andotherOTCfocusedcompanies.IPOsbycompletiondate.Datathrough6/30/2024.

DEAFORMA

12

Disclaimer

Chase,J.P.Morgan,JPMorgan,JPMorganChase,andStorybyJ.P.MorganaremarketingnamesforcertainbusinessesofJPMorganChase&Co.anditsaffiliatesandsubsidiariesworldwide(collectively,“JPMC”,“We”,“Our”or“Us”,asthecontextmayrequire).

Theinformationcontainedinthismaterialisnotadviceonlegal,tax,investment,accounting,regulatory,technologyorothermatters.Youshouldalwaysconsultyourownfina