103 Technological Advances Should Lower R&D Costs For Each Drug During the past decade, R&D spending per drug in development has declined by 3% at an annual rate. According to our research, this decline should continue, if not accelerate, thanks to groundbreaking advancements in fundamental biology, single-cell sequencing, proteomics, automation and artificial intelligence. Together, these efficiencies should contribute $1.5 trillion, or ~40%, to the increase in enterprise value for precision therapies by 2030. Y G O L Precision Therapy Sales O Projected Average Annual R&D Spending HN Could Grow 30% Annually Into 2030 C Per Drug In Development Pipeline E $700 T D $12 s N e $600 A al Historical S Historical PT Sales S $11 L O ARK Projection al $500 Projected O $10 T ns ) Market Expectation C io Annu $400 l ns MI il $9 s io O M ie l I il T $ ap B $300 L , $8 r al he ($ MU b T o $7 n $200 Gl io $6 cis $100 e r P $5 1 2 3 4 5 6 7 8 9 $- 1 1 1 1 1 1 1 1 1 2122 23 2425 26 2728 29 0 20 3 0 2 4 6 8 0 2 4 6 8 0 20 20 2020 20 2020 2020 20 20 0 0 0 0 0 1 1 1 1 1 20 22 24 26 28 3 20 20 2020 20 2020 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of external sources, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.