Health is wealth. And for biotech, the lifeblood of pharma innovation and a key driver of the Life Science and CDMO sectors, wealth is also health. The recent collapse in biotech funding has raised questions over the outlooks for LS/CDMO. But the prognosis is improving. Our comprehensive examination of the biotech funding environment shows biotech cash balances are now increasing, with IPO and fundraising activity picking up. Despite some softness in Q2, we believe the data support a discussion on when rather than if funding will recover. In our coverage, we see Lonza (+) and Siegfried (+) as best placed to benefit from funding tailwinds. Merck KGaA (=) and EUROAPI (=) face near-term structural pressures.