Third Highest Year for Investment by UK Biotech

The UK biotech sector raised £1.3 billion in 2019 according to figures published in January by the UK BioIndustry Association (BIA) and Informa Pharma Intelligence. The total is the third highest year recorded by the trade association and since 2012 investment has increased by over 400%.

Highlights from the report, include:

• A total of £1.3bn was raised by UK-based biotech companies in 2019
• Over £679m was raised in venture capital, £64m was raised in Initial Public Offerings (IPOs) and £596m in all other public financings
• The sector has enjoyed five consecutive years of raising over £1billion plus of investment
• The UK remains the leading cluster in Europe for amounts raised through venture capital, accounting for a quarter (26%) of the continent’s total
• Long term growth of over 400% since 2012 has cemented the UK’s position as the third global life sciences cluster

Steve Bates OBE, Chief Executive of the BIA said: “The UK biotech sector continues to chart an ambitious global path. With five consecutive years of raising over £1billion and a 400% increase in investments since 2012, the sector is in a very strong position heading into a new decade.

“It’s clear that UK biotech companies remain an attractive investment opportunity for global investors, meaning there’s a greater diversity of capital than we saw five years ago. However, while we welcome overseas investment, diversifying the domestic life sciences investor base is critical to capturing the full benefits of this key sector of the UK economy.

“Government efforts to leverage new scale-up capital through the British Business Bank and the UK pension funds industry should be stepped up, as should grant funding for early-stage companies through the Biomedical Catalyst.”