There is some light at the end of the tunnel for small and midsized life sciences companies. The broader biotechnology equity capital markets, as evidenced by the Nasdaq Biotechnology index (NBI) and S&P Biotechnology ETF (XBI), while still well below their high marks in early 2021, have rebounded from their more recent lows in June 2022.

These indices are generally trading flat on a year-to-date basis. Broader macro conditions, including inflation and higher interest rates, and the perceived impact of regulatory and pricing legislation such as the Inflation Reduction Act, continue to weigh down the broader life sciences sector and, in particular, the biotechnology subsector. On a positive note, venture capital investment in emerging life sciences companies, while below the highs of 2020-2021, are still on par with pre-pandemic levels with several $100 million plus venture/growth capital financings announced over the past several months.