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Latest Life Sciences Snapshot report highlights trends in sector

The latest Life Sciences Snapshot report from Orrick, the global consulting firm, reviews key trends of venture investment in the sector during Q3 2022 along with a roundtable discussion on non-dilutive financing and how it can be a viable and valuable option for early stage life sciences companies.

Available for download here, the report highlights these key trends:

  • The industry generated $6.2 billion in deal value across 352 deals in Q3, exhibiting further quarterly declines as punishing macroeconomic conditions continued. Year-to-date (YTD) deal value, however, remains higher than before the onset of the pandemic.
  • Deal volume has continued to decline, with Q3 deal volume returning to pre-pandemic levels.
  • Median deal sizes for Series A and Series D or later companies experienced material growth, but some other stages saw declines. Median pre-money valuations rose for both angel, seed and early-stage venture-backed companies but declined slightly for late-stage deals.
  • Exit prospects remain unfavorable, with just $463.6 million generated across nine deals in Q3. In contrast to deal value, YTD exit value of $13.8 billion lags far behind the annual totals of previous years, including before the pandemic. Public market volatility continues to impact IPO candidates, and many have adopted a wait-and-see approach.

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