The challenging funding environment will likely prompt small- and mid-cap listed life sciences companies to seek financing through private investments in public equity.

Small- and mid-cap life sciences companies typically draw upon two major fundraising sources: licensing and collaboration agreements (which have the potential to provide funding without dilution) and equity injections. While equity injections can involve contributions-in-kind from strategic partners, they more commonly take the form of private investments in public equity (PIPEs) by financial or strategic partners.