Top 10 Life Science Trends

1. TOP 10 Life Sciences Trends to Watch in 2025 January 2025

2. Our Approach to Identify Top 10 Life Sciences Trends for 2025 Track Emerging Trends Set Priorities & Rankings Analyze Emerging Trends Tracked and captured more than 100 trends across entire life science ecosystem in 2024, that could be potential game changer in 2025 Each innovation was given a weightage (60:40) & a rating on a scale of 1 to 5 based on two criteria: its impact on the future of health and ease of commercialization Top 10 trends were identified based on the scores of their impact on the future of health, novelty and ease of commercialization factor Gathered key information for each trend such as focus area, novelty, lucrativeness, biopharma interest, commercialization, technology impact etc. to understand the larger impact potential of each trend Finally, the top 10 innovations were analyzed deeply to understand how it will be beneficial for future health and how it can be served as powerful catalyst Trends were prioritized based on possible scores and different pre-assigned weights

3. Top 10 Themes that will be Over Life Sciences Market in 2025 Themes Description Obesity treatment landscape is on the cusp of significant transformation as new drugs enter the market and competitive dynamics shift Emerging players are expected to launch their obesity products from 2026, competing with two current major players Eli Lilly and Novo Nordisk 01 Obesity ADC Market to skyrocket from ~$10 Bn in 2023 to ~$40 Bn by 2030, fueled by advances in targeted therapies Due to significant commercial potential, generating billion-dollar sales, ADCs have become key technology in life sciences, prompting high-profile deals Antibody Drug Conjugates (ADC) 02 Cell and Gene Therapy Landscape is Rapidly Expanding with Increased Approvals and Strategic Acquisitions in 2024 Technological advancements and innovations will significantly boost cell and gene therapies by 2025, driven by improved manufacturing and regulatory approvals Cell & Gene Therapy 03 Biosimilar market is poised for continued growth driven by patent expirations, favorable regulatory environment and increasing number of biosimilar approvals Growth of biosimilar market is majorly attributed to 30+ biosimilars expected launches for 9 products and 3 therapeutic areas in 2025 04 Biosimilars Direct-to-Consumer (DTC) and Direct-to-Patient (DTP) healthcare models are reshaping the future with enhanced access, affordability, personalized care, and patient empowerment Biopharma companies are leveraging DTC ads to reach vast audiences and expected to further enhance these activities in 2025 DTC & DTP Models 05

4. Top 10 Themes that will be Over Life Sciences Market in 2025 Description Themes Pharma companies are focusing on value driven health delivery models for improved outcomes at lower cost Pharma companies are transitioning to Commercialization 3.0, focusing on delivering holistic value to all stakeholders amid growing scrutiny of healthcare costs Commercial- ization 3.0 06 Pharmaceutical companies are set to reshape their launch strategies by 2025, with Medical Affairs playing a pivotal role in this transformation Pharmaceutical companies are also developing omni-channel strategies and commercial analytics for competitive advantages during product launch Launch Strategies 07 Life sciences sector saw a continued slowdown in deal activity in 2024, as macroeconomic headwinds deterred dealmakers from pursuing perceived high-risk transactions Despite of low M&A activities in 2024, 2025 is expected to become significant year for M&As due to upcoming LOEs Life Science M&As 08 AI is poised to generate $350–$410 Bn annually for the pharmaceutical sector by 2025, driven by advancements in drug development, clinical trials, precision medicine, and operations Companies are leveraging GenAI specifically for drug discovery to identify novel molecules and speed up transformation timelines Artificial Intelligence 09 With healthcare spending in focus, pharma companies are leveraging RWE beyond narrow study-based approaches to create sustained value across the product lifecycle RWE is providing advanced information, and expected to realize $1 Bn value across product life cycle if applied systematically RWE Integration 10

5. 01 Obesity Treatment Landscape is on the Cusp of Significant Transformation as New Drugs Enter the Market & Competitive Dynamics Shift Current obesity market is dominated by Novo Nordisk and Eli Lilly, but market is expected to grow considerably due to development from emerging competitors and innovation Emerging Players in Obesity Segment by 2031 Challengers 146 Incumbents 36 13 71 2020: First Generation 2023: Current Generation 2031E Acquisition Targets Key Firms Novo Nordisk, AstraZeneca Novo Nordisk, Eli Lilly Several Key Firms Dominance of Novo Nordisk and Eli Lilly Emerging Competitors and Innovation Next wave of obesity drugs is characterized by a growing number of new entrants, with 16 new obesity drugs expected to launch by 2029 Novo Nordisk and Eli Lilly currently dominate the obesity drug market, collectively accounting for 68% of weight-loss drug sales Their leading products, Wegovy and Zepbound, have set high standards for efficacy and safety, benefiting from extensive clinical data and established brand recognition Companies like Amgen, Roche, and Zealand Pharma are developing innovative therapies that may offer superior efficacy or novel mechanisms of action compared to existing GLP-1 agonists Analysts predict that these companies will retain a significant portion of the market share—approximately two-thirds—due to their first-mover advantages and ongoing innovation in their product pipelines This influx is projected to contribute an additional $70 Bn to the GLP-1 market by 2031, indicating a shift towards greater competition *Incumbent: A dominant company or individual currently in a leading position in a market; Challenger: A new or smaller company or individual competing against incumbents.

6. 01 Emerging Players are Expected to Launch their Obesity Products from 2026, Competing with Two Current Major Players Eli Lilly & Novo Nordisk Emerging players in Obesity segment is expected to start competing Lilly and Novo from 2026     Approved 2025E 2026E 2027E 2028E 2029 & Beyond Injectables Wegovy (2021)           GLP-1 Danuglipron CT-996 Orals   Rybelsus Orforglipron   GSBR-1290 AZD5004 CT-388 Zepbound (2023) Injectables     Maritide   VK2735 +GIP Orals           VK2735 Petrelintide Injectables     Cagrisema     Amycretin +amylin Orals           amycretin Pemvidutide +glucagon Injectables     Survodutide     Retatrutide +CB1 Orals           Monlunabant +activin/myostatin Injectables         Bimagrumab  

7. 02 ADC Market to Skyrocket from ~$10 Bn in 2023 to ~$40 Bn by 2030, Fueled by Advances in Targeted Therapies Currently, over 180 ADCs are in various stages of development worldwide, with nearly half in Phase I trials. approximately 80% of these target solid tumors. Innovations in conjugation technologies are significantly enhancing the precision, safety, and efficacy of ADCs. Worldwide ADC Sales, 2022–2030F (in $ Bn) 2024 H1 Worldwide Sales (in $ Mn) In 2023, the market was valued at around $10 Bn, with projections forecasting a CAGR of approximately 21% from 2023 to 2030, leading to an estimated value of $39 Bn by 2030 To date, seven FDA-approved ADCs are expected to reach or maintain blockbuster status (over $1 Bn in annual revenue) by 2030 These include Enhertu, Kadcyla, Trodelvy, Polivy, Padcev, Adcetris, and Elahere $39 Enhertu $1,772 $35 $31 Kadcyla $1,175 $26 $628 Trodelvy $22 $18 Polivy $604 $13 $10 $8 $735 Padcev $536 Adcetris Elahere $192 2022 2023 2024 2025F 2026F 2027F 2028F 2029F 2030F ADC Pipeline P-I 99 Out of 180 unique assets in pipeline, 49% are in phase I, 26% are in phase II and 14% are in phase III trials which shows early-stage focus on evaluating safety, dosing and initial efficacy Most of ADCs are in development of solid tumors and rest are focused on hematologic malignancies including leukemias, lymphomas and multiple myeloma to address unmet medical needs that ADC treatment can potentially address P-I/II 48 P-II 21 P-III 22

8. 02 Due to Significant Commercial Potential, Generating Billion-dollar Sales, ADCs Have Become Key Technology in Life Sciences, Prompting High-profile Deals After 2023, M&A activities have accelerated due to clinical successes. FDA approvals etc. Looking ahead to 2025, the ADC market is expected to continue its robust growth trajectory, with total deal values projected to reach nearly $30 Bn by 2028 ADC Deal Activity Top M&A Deals in 2024 (by Value) Deal Value ($ Bn) Companies Description 165 Co-develop and commercialize three of Daiichi Sankyo’s ADC candidates 22 5 112 2 Acquisition includes FDA-approved Elahere, targeting folate receptor alpha in ovarian and related cancers 10.1 121 2 48 20 18 3 Collaborated for BL-B01D1, a potential EGFRxHER3 bispecific ADC 16 4 8.4 2 7 5 7 8 Acquisition includes Ambrx’s proprietary ADC technology to design & develop 5 5 4 3 2 2020 2021 2022 2023 2024 (H1) Collaborated for HS-20093, a B7-H3 targeted ADC utilizing a clinically validated topoisomerase inhibitor payload Strategic Collaboration License & Collaboration agreement Deal Value ($Bn) 1.71 Licensing agreement Acqusition Note - Bar denotes # of deals and line represents deal value in $ Bn

9. 03 Cell and Gene Therapy will Continue to Expand due to Increased Approvals and Strategic Acquisitions in 2024 In 2024, 9 cell and gene therapies (including Bizengri, Lyfgenia, Casgevy and Tecelra) have been approved demonstrating growing momentum and the FDA's commitment to advancing innovative treatments Funding Activities in the Cell and Gene Therapy Sector for 2024 Gene Therapy Pipeline: Yearly Comparison Funding Amount Company Type Focus Forecasted Acquisition (By Roche) Enhancing cell therapy portfolio for cancers $1.5 Bn Total 8,702 Engineering advanced CAR T-cell therapies for solid tumors Funding $325 Mn Advancing autologous and allogeneic CAR-T therapies Funding $112 Mn Till Q3 7,350 8,094 8,290 6,202 Advancing allogeneic cell therapies Funding $66 Mn Developing immunotherapy solutions Funding $30 Mn 2021 2022 2023 2024

10. 03 Technological Advancements and Innovations will Significantly Boost Cell and Gene Therapies by 2025, Driven by Improved Manufacturing and Regulatory Approvals By 2025, technical advancements will improve gene editing precision & streamline development, driving the growth of cell & gene therapies. These innovations are expected to enhance precision in gene editing & positioning cell & gene therapies as pivotal in future healthcare solutions. Crispr Technology: Building on Momentum from 2023 The Role of Artificial Intelligence in Biotech Innovation Breakthroughs in Neurological Disorder Treatments In 2024, the CRISPR landscape continued to thrive, following the FDA's historic approval of Casgevy, the first CRISPR-based therapy for sickle cell disease. This milestone propelled further advancements in gene editing, including: Beam Therapeutics launched a phase 1/2 trial for BEAM-302, targeting alpha-1 antitrypsin deficiency Intellia Therapeutics reported promising interim results for NTLA-2002, aimed at reducing Hereditary Angioedema attacks KSQ Therapeutics initiated a phase 1 trial of KSQ-001, focusing on enhancing anti-tumor activity through CRISPR-edited therapies Collaborations, such as between Editas Medicine and Genevant Sciences, highlighted the growing synergy within the CRISPR field, aiming to develop innovative gene-editing therapeutics 2024 was characterized by significant advancements in the integration of AI within the biotech sector Major tech companies like Google & Microsoft played pivotal roles in enhancing drug discovery processes Key developments included: Rise of "Techbio," where traditional biotech firms partnered with tech giants to leverage AI capabilities Recognition of AI's contributions to drug discovery, particularly through tools like AlphaFold, which predicts protein structures Despite concerns about an AI bubble, the prevailing view leaned towards a market correction rather than a collapse, emphasizing AI's ongoing relevance & potential in biotech innovation Year also witnessed substantial progress in addressing neurological disorders, especially Alzheimer's disease: FDA approved donanemab (Kisunla), a monoclonal antibody targeting amyloid- beta plaques, showing promise in slowing cognitive decline New therapeutic approaches emerged, such as Asceneuron's ASN51, which targets tau protein aggregation Pharmaceutical companies renewed their focus on neurology, driven by an aging population and the increasing prevalence of neurodegenerative diseases. Notable acquisitions underscored this trend, with companies like Lundbeck and AbbVie making significant investments in neurological research

11. 04 Biosimilar Market is Poised for Continued Growth Driven by Patent Expirations, Favorable Regulatory Environment and Increasing Number of Biosimilar Approvals Biosimilars market is set for sustained growth, with projections surpassing $64 Bn by 2028. The entry of new players, particularly generics companies, will influence the market’s evolution because they may employ different business models to compete with established pharmaceutical firms # of Biosimilar Approvals (2015 –2024) 17 FDA Approval EMA Approval 16 14 12 10 9 8 7 7 6 6 5 5 4 4 3 3 3 0 1 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Humira (adalimumab) encounters the highest level of competition, with 10 biosimilars approved by both the FDA and EMA over the years, while Stelara (ustekinumab) has the most biosimilar approvals for a single drug, with 6 biosimilars authorized by each agency in 2024 In 2024, CVS made the first significant move by removing brand Humira from its major national formularies, resulting in national market share of biosimilar Humira reaching 25% with two other PBMs, Express Scripts and Optum Rx, have also announced they will be removing brand Humira from their major formularies in 2025 US FDA proposed new guidelines which removes the mandate for a dedicated switching study, making easier for biosimilars to achieve the interchangeability designation and lowering the barrier for biosimilar market competition and In EU, biosimilar approvals landscape is diverse and comprises of 25 originator drugs and is further expected to diversify with more loss of exclusivity by the end of the decade

12. 04 Growth of Biosimilar Market is Majorly Attributed to 30+ Biosimilars Expected Launches for 9 Products and 3 Therapeutic Areas in 2025 Immunomodulators will be the primary therapeutic area followed by oncology & bone health respectively Expected Biosimilar Launches Therapy Class (Reference products included have no launched biosimilars) Simponi 2 Immunomodulators Perjeta Oncology 2 Bone Health Novolog 2 Prolia & Xgeva 13 Humalog 2 Xolair 4 Soliris Enbrel 2 3 Tysabri Cosentyx 1 2 Opdivo Keytruda Entyvio 2 4 1 Stelara 8 2025 2026 2027 2028 2029 # Molecule on the IRA Medicare price negotiation list # of identified Phase 3+ biosimilars aligned to reference product

13. 05 DTC and DTP Healthcare Models are Reshaping the Future with Enhanced Access, Affordability, Personalized Care, and Patient Empowerment The DTC/DTP model in the pharmaceutical industry enables direct engagement between companies and consumers, bypassing intermediaries like pharmacies and healthcare providers. This approach reshapes how medications and services are delivered to patients Top Pharma Tv Ad Spenders (for Month Oct’24) Pharmaceutical Companies Are Increasingly Adopting the Direct-to- consumer (DTC) Model for Several Strategic Reasons: Products Spend ($ Mn) Products Cost Savings 1 Skyrizi $51.5 Eliminating intermediaries allows companies to retain more profit and potentially lower medication prices for consumers Dupixent $35.2 2 Consumer Insights Direct sales provide valuable data on patient preferences and experiences, informing product development Rinqov $35.1 Tremfya $34.1 Insurance Navigation 3 DTC sales help bypass insurance denials, giving consumers easier access to high-cost medications not covered by many plans Breztri Aerosphere $26.6 Rexulti $21.0 4 Technological Advancements Telehealth and digital tools facilitate direct engagement with patients, enhancing the consumer experience Jardiance $18.9 In Q3 2024, Pfizer increased its advertising spend on video platforms while decreasing social media expenditures, allocating 19%, 11%, and 10% of its digital ad budget to Litulfo, Abrysvo, & Velsipity, respectively, marking a shift from previous years when Cibinqo received a larger share of the budget AbbVie (59%) and Eli Lilly (23%) also prioritized video advertising, particularly OTT, in Q3 2024. AbbVie outspent Pfizer, Eli Lilly, Bayer, and Kenvue by more than 3x on digital advertising Bayer (44%) and Kenvue (21%) allocated significant ad spend to TikTok, targeting younger audiences likely to purchase OTC medications

14. 05 Biopharma Companies are Leveraging DTC ads to Reach Vast Audiences and Expected to Further Enhance these Activities in 2025 By 2025, leading pharma companies will boost their focus on DTC advertising, using advanced mobile technologies and data-driven strategies, utilizing video ads and mobile engagement tools to reach expansive audiences effectively Biopharma players to watch for DTC activity in 2025 In 2024, Abbott expanded its reach with Lingo, a CGM device for people at risk of diabetes, tapping into the vast prediabetes market In 2024, launched Stelo, an over-the-counter glucose biosensor. The company's DTC approach focuses on user experience and integrates with platforms like Apple and Fitbit Eli Lilly has entered the DTC biopharma space with its GLP-1 drugs Mounjaro and Zepbound, the latter launched through its new LillyDirect platform Pfizer entered the DTC space with its COVID-19 vaccine distribution through government and pharmacy partnerships, and in late 2024 launched the Pfizer For All platform Looking ahead in 2025, Abbott plans to broaden its DTC portfolio with innovations like an integrated CGM-insulin delivery system, a deep brain stimulation device for depression, organic infant formula, and an aspirin-free heart failure regimen As demand for weight loss solutions grows, Lilly plans to expand its DTC channels, with increased tirzepatide production and anticipated late-stage trial results for an obesity pill by 2025 In 2025, Dexcom is likely to further enhance consumer engagement with personalized, tech-driven health insights for people with diabetes and prediabetes Looking ahead, Pfizer is likely to expand this platform in 2025 with the addition of its in- development oral weight-loss drug, ganuglipron

15. 06 Pharma Companies are Focusing on Value Driven Health Delivery Models for Improved Outcomes at Lower Cost Pharma companies are refining their commercialization strategies moving from sales centric approach to value-driven fueled by shift in healthcare delivery models, access barriers, and evolving stakeholder expectation Commercialization 1.0: 1980-Early 2000s Commercialization 2.0: Mid 2000s- 2020s PBM negotiations on behalf of insurers to obtain price reductions from drug manufacturers created a gross-to-net bubble in 2023 that was estimated at $334bn Military Launch Model Access Centric Model Gross-to-net Reduction for Branded Drugs ($ Bn) Relied on massive, coordinated sales forces to engage physicians, leveraging prescribing data to drive adoption through reach and frequency Shifted focus to payers and PBMs, prioritizing value demonstration and deep rebates to navigate formulary hurdles and secure drug access 350.0 334 304 300.0 Model deemed the larger sales force and greater effort to build relationship with doctor, the more successful the product launch Industry wide sales force expanded from 40,000 in mid-90s to over 100,000 by 2005 with Pfizer employing 11,000 sales rep and other companies followed Pfizer Merck’s attempt to acquire Medco signaled a shift towards a more centralized approach to access via pharmacy benefit managers By the mid-2000s, the power to influence drug demand shifted from physicians to payors, as pharma companies shifted from primary care drugs to specialty drugs Market access became the key with need for demonstrating value to payers became paramount as they had control over which drugs patients could access PBMs controlling 80% of insured lives introduced formulary hurdles like step edits and high co-pays, significantly affecting prescribing behavior and patient adherence 266 241 250.0 209 200.0 150.0 100.0 50.0 0.0 2019 2020 2021 2022 2023

16. 06 Pharma Companies are Transitioning to Commercialization 3.0, Focusing on Delivering Holistic Value to All Stakeholders Amid Growing Scrutiny of Healthcare Costs Commercial models are taking the shape of business ecosystem interactions across multiple stakeholders including HCP, payer and consumers fueled by advanced analytics, moving from siloed approach to a connected ecosystem Commercialization 3.0: Current & Future Trends Observed in How Pharma Companies are Revising their Commercial Engagement Models Across Multiple Stakeholders The Value Era Centers on delivering multifaceted value by addressing clinical and financial concerns for all stakeholders, ensuring ease of adoption and affordability With consolidations and integration of healthcare organizations, individual physicians are turning to employees rather than direct decisions makers making pharma companies to engage with accountable care organizations with a value proposition centered around patient outcomes Integration of Healthcare organizations Pharma companies stand at the threshold where large sales force, access and clinical superiority alone cannot guarantee success amid rising costs Pharma companies are investing in consumer-focused healthcare services with many pharma companies like Pfizer’s PfizerForAll and Eli Lilly launched LillyDirect have launched direct-to-consumer as patients are getting involved in choosing where and how they receive services Investments in consumer- focused services Success lies on delivering value to all stakeholders including patients, physicians, payers, and health systems addressing financial, & emotional concerns Contracting and value- based pricing Pharma companies are advancing their contracting capabilities and value- based pricing as they move away from the fee-for-service model and toward outcomes-based engagements to resonate with larger HCOs and payers Pharma company are focusing on building holistic value that can integrated into practice, convenient for patients and derisked trials for stakeholders With customer dynamics moving away from individual physicians to organized providers and integrated services, pharma companies are also heavily investing advanced data analytics enabling them to commercialize their products more successfully, especially in rare diseases and hard-to-diagnose disease states

17. 07 Pharmaceutical Companies are Set to Reshape their Launch Strategies in 2025, with Medical Affairs Playing a Pivotal Role in this Transformation Medical Affairs is transforming by 2025, prioritizing agile, hybrid strategies & predictive analytics to drive efficiency and cost reduction Evolving Account Management Capabilities in the Pharma Industry Medical Affairs: Strategic Priorities for Maximizing Patient Impact by 2025 Implementing Agile Approaches in Product Launch and Commercialization Focus is shifting from "Physician as account" to "Integrated Delivery Network (IDN) as account," with roles like National Account Managers, Key Account Managers, and Strategic Account Directors increasingly targeting IDN C-suite executives in 2025 These roles will involve identifying target accounts, mapping decision-makers, and creating comprehensive account plans while ensuring cross-functional coordination Pharmaceutical companies are increasingly prioritizing physician-level impact evaluation, evidence generation planning, and the integration of medical data and analytics into decision-making processes in 2025 They will adopt agile models to swiftly adapt to new therapies, emerging evidence, and clinical practice changes while personalizing healthcare provider engagement through advanced data-driven insights Companies like Novartis and Sanofi are expected to further transform their Medical Affairs models, expanding responsibilities across broader functions while maintaining a strong focus on core activities, ultimately enhancing patient outcomes and strengthening stakeholder relationships in an evolving healthcare landscape. As market challenges like a complex customer landscape and limited insights persist, pharmaceutical companies are set to adopt agile practices to enhance efficiency, encourage experimentation, and foster collaboration in 2025 Allergan's innovative approach with Botox, including the launch of Allergan Data Labs, Spotlyte, and Regi, exemplifies how companies will enhance workflow and customer engagement through agile methodologies As the industry evolves, the emphasis will transition from prescribers to key opinion leaders (KOLs) and clinician influencers, leveraging advanced data analytics and digital engagement strategies to enhance relationships and drive value in a rapidly changing healthcare landscape This shift will empower organizations to rapidly respond to emerging evidence and changing market dynamics, ensuring that product launches are not only timely but also tailored to meet the evolving needs of healthcare providers and patients in a highly competitive environment

18. 07 Pharmaceutical Companies are also Developing Omni-channel Strategies and Commercial Analytics for Competitive Advantages During Product Launch Pharma companies are embracing omnichannel strategies, transitioning to predictive and prescriptive models, and experiencing a rising rate of outsourcing Companies are shifting to virtual showrooms for showcasing complex medical equipment and adopting omni-channel strategies to customize customer engagement based on varying preferences Increased pricing and competitive pressures, particularly for mature products, are lowering ROI for in-house commercial resources, prompting biopharma companies to outsource Pharmaceutical commercial analytics market is shifting towards predictive and prescriptive models, as automation reduces spending on descriptive analytics Pharma Analytics Spend Evolution in 3 years Outsourcing Penetration Rate and Opportunity Customer engagement in field is now through virtual means 50-70% 19% Large pharma companies are shifting from a traditional representative based model to dynamic targeting model through predictive analytics 2-6% sales lift by using dynamic target model 81% 25% More than 85% of Sanofi’s global distribution network uses outsourcing through third party vendors (such as DHL) in Germany, Italy and US Big Pharma Pfizer is outsourcing its entire data management along with other related functions such as data entry, monitoring, statistics and medical writing Reduction in sales force could also generate same level of sales for some companies Descriptive Diagnostics 70% Predictive Prescriptive

19. 08 The M&A Activities are Expected to Rebound in 2025 Significantly Driven by the Big Pharma’s Patent Cliff M&A activity in 2025 will be driven by companies addressing LOE risks through strategic acquisitions, with a focus on oncology, immunology, cell therapies, rare disease assets & digital health M&A Trends for 2025 Expected Pharma Investments 1 Patent Expirations and Pipeline Issues Major exposure from 2025-2030 with 47% of its $72B revenue at risk due to LOEs Will focus on licensing partnerships & bolt-on acquisitions, particularly for earlier-stage assets Between 2025 and 2030, close to 200 products, representing nearly $240B in total revenue, will see key patents expire, including a peak of $60B in 2029 Companies will be acquiring late-stage or market-ready biotech assets Immuno-oncology blockbuster Keytruda is the biggest LOE risk (US exclusivity ends by 2028) Merck will remain open to deals across all clinical stages, with a focus on $1B to $15B transactions 2 Focus on Faster Revenue-Generating Assets Companies will be targeting late-stage assets for quicker returns, leading to intense competition and higher valuations Faces LOE risks for Entresto (2024-2025) and Cosentyx (2028) Will focus on bispecifics, cell therapies, and smaller transactions under $1B to address gaps 3 Innovation in Emerging Therapeutic Areas Advancements in gene therapy, RNA therapeutics, and precision oncology will fuel M&A activity as companies seek to capitalize on innovative treatment technologies Significant LOE exposure from drugs like Farxiga (14% of 2025 revenue), Lynparza Will continue their interest in oncology and cell therapy 4 AI Revolution in Drug Discovery AI is accelerating R&D, reducing costs, and optimizing drug development, prompting acquisitions of AI-driven biotech firms

20. 08 Life Sciences Sector Saw a Continued Slowdown in Deal Activity in 2024, as Macroeconomic Headwinds Deterred Dealmakers from Pursuing Perceived High-risk Transactions Total value of deals in the life sciences industry worldwide (in $ Bn) Total value of deals in the life sciences industry worldwide (in $ Bn) Ongoing macroeconomic uncertainties, including inflation and geopolitical tensions, have made companies more cautious in their investment decisions, leading to a reduction in deal-making activity Additionally, increased regulatory scrutiny has created hesitance among potential acquirers, with the threat of prolonged approval timelines for large mergers discouraging significant transactions Companies are also prioritizing strategic acquisitions that align with their long-term growth objectives, particularly those targeting late- stage clinical assets or products nearing market launch $354 2020 $517 2021 $309 2022 $381 2023 Till Q3: $115 Total: $275 Forecasted 2024 0.0 100.0 200.0 300.0 400.0 500.0 600.0 Top 3 Most Prolific Dealmakers in 2024 Acquirer Target Deal Drivers CDMO services, delivery technologies & manufacturing solutions $16.5 Bn Intravascular lithotripsy technology for the treatment of coronary artery disease & peripheral artery disease Povetacicept (ALPN-303), a dual antagonist of BAFF and APRIL in Phase II development for IgA nephropathy $13.1 Bn J&J led as the top dealmaker in H1 2024 with 20 disclosed deals, driven by oncology and immunology assets, as it prepares for biosimilar competition to its psoriasis drug Stelara in 2025 After topping the deal activity rankings in H1 2023, Merck & Co. experienced a 19% decline in H1 2024, with over 50% of its 17 deals focused on clinical trial collaborations and supply agreements for Keytruda Sanofi secured third place in the deal activity rankings in H1 2024 with 17 deals, marking a 42% increase compared to the previous year $4.9 Bn Oral PPARδ agonist, seladelpar, for the treatment of primary biliary cholangitis $4.3 Bn Divestment of Edwards’ critical care product group including monitoring technologies and advanced AI-enabled clinical decision tools to BD $4.2 Bn

21. 09 AI is Poised to Generate $350–$410 Bn Annually for the Pharma Sector by 2025, Driven by Advancements in Drug Development, Clinical Trials, Precision Medicine, & Operations AI is revolutionizing healthcare with faster drug discovery, continuous learning models, and 950 FDA-approved AI/ML devices by 2024, highlighting its role in enhancing patient outcomes and healthcare efficiency Noteworthy Pharma AI Investments Shifts Coming to Biopharma R&D in 2025 AI pivots to biology- first approaches More AI partnerships and regulatory wins Structured digital twin Sanofi launched its AI app, plai, to unify internal data across functions, leveraging AI to advance mRNA research Biopharmaceutical industry is shifting to a biology-first AI approach, focusing on real, long-term biological data Structured digital twin adoption is expected to transform drug development and manufacturing processes Successful examples highlight the promise of digital twins in 2025 Partnerships between pharma giants and AI- driven drug discovery firms are growing, like Schrödinger's collaboration with Novartis in November 2024 In partnership with Verge Genomics, Alexion AstraZeneca is using machine learning to identify drug targets for rare diseases By combining AI with patient-derived multi- omics datasets, the goal will be to understand disease mechanisms and treatment responses, moving beyond pattern recognition to uncover the causes of diseases In partnership with Phenomic AI, BI is utilizing AI and machine learning to discover stroma-rich cancer targets GSK has already seen success, accelerating its RSV drug trials by two years using predictive data modeling, and more such advancements are expected in 2025 Phesi’s G12C KRAS mutation case study leveraged biomarker data to simulate patient responses & streamline trial designs Pfizer, an early adopter of Google Cloud's Target and Lead Identification Suite, is using AI-powered tools to streamline and accelerate the drug discovery process Alzheimer’s trials saw reduced durations by modeling shorter observation periods with significant cognitive decline insights As an investor in generative AI company Yseop, Novartis is working to automate the entire documentation process from preclinical trials to FDA approval

22. 09 Companies are Leveraging GenAI Specifically for Drug Discovery to Identify Novel Molecules and Speed up Transformation Timelines Biopharma and MedTech leaders recognize generative AI's impact in improving drug development, compliance, supply chains, and patient care Global AI in Drug Discovery Market (in $ Bn) Generative AI is Leading: 14.0 $12.8 Over 90% of leaders in biopharma and MedTech recognize the impact of generative AI on the industry This technology is being utilized to enhance drug formulation, accelerate clinical trial recruitment, and improve patient care In 2024, 66% of companies in the life sciences sector are utilizing artificial intelligence (AI) to enhance various business operations, particularly in compliance improvement and supply chain transformation 12.0 $9.8 10.0 $7.7 8.0 $6.2 6.0 $4.9 $4.2 4.0 Silicon Valley-based company Saama is currently among the AI companies involved in clinical trials that have raised the largest amount of capital, totaling approximately $470 Mn in total funding, including a notable $430 Mn investment from a consortium led by The Carlyle Group, alongside contributions from major healthcare players like Pfizer, Amgen, Merck, and McKesson $3.3 $2.6 $1.9 2.0 $1.5 0.0 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 According to the survey, If intelligent technologies are used at scale and workflows are reinvented appropriately, companies can achieve: 1-4yr $0.5-2 Bn 35-45% 10-15% 10-30% 30% reduction in bringing a new medicine to market revenue upside per new medicine reduction in costs per successful drug reduction in working capital (inventory) acceleration of time to peak sales reduction in corporate function costs

23. 10 With Healthcare Spending in Focus, Pharma Companies are Leveraging RWE Beyond Narrow Study-based Approaches to Create Sustained Value Across the Product Lifecycle Pharma companies are expanding from traditional RWE use in value demonstration and market access to investing in end-to-end evidence management, driven by digital health data proliferation End - to - End Evidence Management Approach Top pharma TV ad spenders (For Month Oct’24) Optimizing value Develop, support & sustain a value story for approved therapeutic interventions & to inform new opportunities for therapeutic discovery Collaborated with COTA to leverage RWD & AI to accelerate cancer clinical trials & understand clinical outcomes Therapeutic value optimization Evidence life cycle management Pricing/ market access evaluation & strategy Collaborated with ConcertAI to accelerate precision medicine- driven R&D efforts, & clinical trial optimization in oncology Therapeutic area assessment Generating value Maximize potential for clinical & commercial success through segment patient populations for optimal therapeutic response & safety, support pricing & market access strategies Partnered with BC Cancer to improve market access for personalized healthcare for cancer patients Comparative effectiveness research Safety/ pharmacovigilance Partnered with Karolinska Instituet with an aim to accelerate translational research & RWE & improve health outcomes for patients Population segmentation Discovering value Enhance preclinical & clinical research productivity through precise target & patient cohort identification Collaborated with Briya to enable innovative RWE data analysis project for accurate & holistic view of patient journey Clinical trial design & optimization Biomarker hypothesis generation/ validation Evidence Management Research Clinical Development Commercialization

24. 10 RWE is Providing Advanced Information, and Expected to Realize $1 Bn Value Across Product Life Cycle if Applied Systematically RWE is increasingly replacing traditional information sources like non-behavioral PMR, consumption data, observational studies, and certain RCT expenditures Key Areas Value Capture Through RWE ($ Mn) RWE Examples of Impact Formulary improvement Avoidance of label charges 2-week responses to FDA/3rd party journal publications 100 upside 100-500 Safety value & demonstration Downside avoidance Acceleration of market access submission Payment by use/indication, more effective price negotiations Conditional access via coverage with evidence development 100 Initial pricing & market access Improvement in trial enrolment Reduction in strategic trial design flaws Better product profile design Clinical development 100-200 Brand growth via RWE-enabled marketing Improved promotion via physician-patient segments Forecasting via disease progression models Commercial spend effectiveness 200-300 Launch improvement via patient pool segmentation Rapid adjustment of messaging/resource allocation at launch 150 Launch planning & tracking Cost savings versus primary market research Doubling of impact factor of publications 100 Productivity & cost savings Rather than applying opportunistically, systematically applied RWE can help top pharma companies to realize $1 Bn in value across product life cycle Traditional RWE focus area Additional RWE focus area

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