1、Outsourced Pharma Services&Pharma Tech Sector BriefHarris Williams|Q4 2024$2.2$22.4$13.1$33.4$50.5$28.1$9.9$56.8$16.1$17.914212621232625312226Q1-22Q2-22Q3-22Q4-22Q1-23Q2-23Q3-23Q4-23Q1-24Q2-24Total Deal ValueNumber of Deals2The pharma services space has received continual interest from sponsors over

2、 the last several years and,even though a full recovery hasnt happened in 2024,strong tailwinds will build momentum despite current softness.Key Considerations and Drivers for Pharma Services in the Second Half of 2024CDMOs Have Doubled-Down on Expanding Capacity3,4Biopharma M&A Is Steady Through 20

3、245,6Likelihood of phase transition over time$in billions and deal count in actuals1)Source:Norstella Why are clinical development success rates falling?2)Source:Citeline Pharma R&D Annual Review 20243)Source:PharmaCompass CDMO Activity Tracker4)Source:Deloitte 2024 Global Life Sciences Sector Outlo

4、ok 5)Source:JP Morgan 2024 Annual Biopharma Licensing and Venture Report6)Source:Fierce Pharma Biopharma M&A More Than Doubled in Q1Outsourced Pharma Services and Pharma Tech|Q4 2024The CDMO space is primed for strong growth over the next few years,notably in specific areas of high unmet demand(e.g.

5、,ADCs,oligonucleotide,GLP-1,and vaccines),and major players in the space are focusing on expanding their capacity Particularly,expansion into large commercial operations,with a particular focus on injectables,and fill-finish capacity have taken center stage in 2024Mega-mergers,like Novos acquisition

6、 of Catalent,will further drive activity and outsourcing to fill demand as incumbent players compete for limited space Additionally,onshoring in the face of regulatory pressure will independently support M&A activity,as international CDMOs face a competitive disadvantage in comparison to their domes