Life Science Monthly - IPO Market Reawakens, Activity Catching Up

Research evidence excerpt

Life Science Monthly - IPO Market Reawakens, Activity Catching Up

USA | REITs EquityJulyResearch16, 2026

Life Science Monthly - IPO Market Reawakens, Why This Matters: Given the costly nature

Activity Catching Up of healthcare research, biotechs tend to rely heavily on outside funding to

June funding of $9.3B is up +60% Y/Y and marks the 2nd best month of 2026 meet short-/medium-term cash needs.

As such, we view biotech funding as a

($10.6B in Apr). IPOs rebounded to $1.6B from $582M in May and VC of $3.0B leading indicator of life science real estate

was importantly not driven by a single large deal. We have noticed a pattern demand. Our correlation analysis suggests

where IPO volumes are ping-ponging this year and have not had two strong that 17% of the variability in ARE's 1st-gen

months in a row. We would like to see more consistency here to become leasing volume (on a TTM basis) can be

explained by changes in biotech funding

incrementally more positive on the demand backdrop. That said, encouraging (also on a TTM basis) from three quarters

month. prior (correlation r2=0.17), while the same

analysis indicates a similar correlation for

June Funding Accelerates, FOs & VC Lead the Way: Per JEF analyst David Windley, June funding DOC's 1st-gen leasing volume on a TTM

of $9.3B was +60% Y/Y and +18% vs the LTM avg ($7.9B); unlike May, the print was broad-based basis (correlation r2=0.12).

rather than driven by a single outsized raise. IPO+FO+PIPE (funding to public biotechs) was $6.3B,

comfortably covering est. cash burn of ~$4.5B/mo across 694 tracked co's, while TTM funding

improved further to +79% Y/Y. By $ contribution, FOs led at $3.7B (+38% Y/Y, +215% YTD), up

sequentially from May ($3.1B), with the YTD gain driven by both deal volume (+76%) and avg