Despite a challenging macroeconomic picture, optimism is alive and well in the longevity space – our latest report crunches the numbers.
As we approach the end of 2023, the global economic landscape remains fraught with challenges; geopolitical conflicts, uncertainties in financial markets and prospects of interest rate hikes have cast gloomy shadows over investment prospects. Notably, the healthcare sector, particularly biotech stocks, has faced headwinds, with the healthcare components of the S&P 500 underperforming the broader index by the widest margin since 1999.
Longevity.Technology: But hope springs eternal, and despite being mired in a climate of uncertainty, the longevity sector is still waving the flag for unwavering optimism. Built on the foundations of cutting-edge science, consolidation of intellectual property and a shared vision of extending and improving human life, the longevity sector remains poised for transformation. Transformation, of course, needs backing, and today we publish our Q3 2023 Longevity Investment Report, providing an overview of global longevity investment in the third quarter.
What’s new in 3Q23?
While it’s still a tough market out there, in the third quarter of 2023, the longevity sector exhibited an upswing in financial activity, with a total financing of $550 million across 34 deals, an improvement on both Q1 and Q2.
The resurgence in financing and deal activity provides a glimmer of hope amidst the challenges faced by the broader biotech market, and although the optimism is palpable, the inherent unpredictability of the investment landscape remains a constant reminder of the need for caution.
Ups and downs, here and there
A retrospective look at the longevity sector’s financing and deal activity reveals notable trends. Q1 2022 was a period of exceptional growth, with $4.48 billion in financing. However, subsequent quarters, including Q1 2023 and Q2 2023, witnessed a dip in financing. Q3 2023’s resurgence with $550 million in financing is a positive deviation from this pattern. Deal activity also displayed fluctuations, with a stabilizing trend in Q3 2023.
There remains global interest in longevity-related investments, with North America and Europe taking the lead. (It will come as no surprise to our readers that the US remains the primary location for financing in this sector.)
Q3 2023 has demonstrated the longevity sector’s ability to defy trends in the broader biotech market. Recent government approvals of drugs Semaglutide (sold as Wegovy and Ozempic) for weight management have sparked interest in their potential applications for antiaging purposes, signaling opportunities beyond their initial indications. AI development platforms continue to drive innovative advancements in the longevity sector, shaping its future.
However, while there seems to be a potential thawing of the icy “biotech winter”, investors need to remain grounded in the face of market unpredictability, as recent global events have shown that investment markets can take unexpected turns. As the longevity sector continues to evolve, careful consideration and a balanced approach remain essential for investors and stakeholders navigating this promising field.
Our report considers deal metrics and investment by longevity domain, analyzes trends and discusses future prospects – and it’s completely free!
Dive into the detail of the Q2 2023 Longevity Investment Report here.