BIA blog | Five key takeaways from a new analysis of the UK’s genomics sector

The UK’s strength in genomics became evident during the pandemic, where we led the world in the early detection and monitoring of variants of SARS-CoV-2 thanks to a strong genomic infrastructure, a highly skilled workforce and an exceptional collaborative spirit. However, the applications of genomics extend far beyond COVID-19 and are leading the way for a healthier and more sustainable world.

Last week, the BIA, the Sanger Institute and Medicines Discovery Catapult (MDC) launched Genomics Nation – a new benchmark report on the UK’s genomics sector aimed at informing potential new investors and policymakers who are key to the ongoing growth of the sector. In this blog, we highlight five of the report’s key findings.

#1 Spinouts and seed-stage companies dominate the sector

The UK genomics sector consists of 154 companies, which were identified through three key criteria: they’re headquartered in the UK, develop or deliver clinically accredited products and services, and genomics is a core aspect of their business.

A key characteristic of these companies is the high number of spinouts from academic institutions; spinouts account for 39% (60 companies) of the total genomics population. This is much higher compared to high-growth companies across all sectors, where spinouts only account for 3% of companies, and demonstrates the important role that institutions play in the genomics sector.

Genomics nation 1.png

 

Another notable aspect of genomics companies is that most of them are very early-stage companies. Seed-stage companies account for 45% of the genomics companies, whereas the general high-growth population is only 36% seed stage. This indicates the relative youth of the UK’s genomics sector.

#2 Companies and workforce are spread across the UK, with a core in the South East

72% of UK genomics companies are based in the East of England, London and the South East, although the largest employer is Randox in Northern Ireland, which employs an estimated 1,400 people. In total, the sector employs over 5000 people.

genomics nation2 edit.JPG 1

In addition to the people working in the sector, there are many highly skilled scientists working in the broader genomics ecosystem in academia, charities, research institutes, the NHS and public diagnostics labs. For example, the Lighthouse Labs Network - the biggest diagnostic lab network in British history - employs around 2100 people. 

#3 Genomics attract a higher proportion of private and public investment v. rest of life sciences

UK genomics companies are disproportionately successful at attracting investment, raising 34% of the total investment in the wider UK life sciences sector while only accounting for 20% of the equity-backed companies. The high deal size and high average total amount raised by genomics companies may reflect the capital-intensive nature of the industry and investor enthusiasm for the space.

genomics nation 3.JPG

 

The same trend can be seen in public investment; genomics companies have secured a higher proportion of UK grant funding compared to the wider life sciences sector. Since 2011, genomics companies secured £151m in grants, which is equivalent to 26% of the total grant funding awarded to life sciences companies. This overrepresentation of genomics companies aligns with the Government’s ambition to grow the genomics sector, as set out in the newly launched Life Sciences Vision.

#4 A few high-value IPOs and several undisclosed acquisitions

Orchard Therapeutics, Freeline Therapeutics and MeiraGTx represent the top three IPOs in the sector, with a total £1.7bn market cap at the time of IPO. These three companies demonstrate the commercial value of gene therapy; they collectively account for 87% of the total value in genomics IPOs over the last 10 years. The expected IPO of Oxford Nanopore on the London Stock Exchange in the second half of 2021 will significantly boost these figures.

While 10 genomics companies have been acquired since 2011, only one of these transactions disclosed the acquisition price. Oxitec, which was using genetics to help combat dengue fever, was acquired by US-group Precigen (formerly known as Intrexon) for £103m in 2015.

genomics nation 5.JPG

#5 Out of six genomics subsectors, therapeutics has raised the most private investment  

Companies using genomics to develop therapeutics have raised £1.2bn in private capital since 2011 – significantly more than the other five genomic subsectors.

Functional genomics – a mix of therapeutics and AI – has the potential to revolutionise drug discovery by enabling scientists to better understand the true mechanisms of disease and more accurately identify novel drug targets. As a result, companies, investors and the UK Government are therefore increasingly investing in functional genomics.

genomics nation 4.JPG

A truly unique opportunity

Genomics Nation shows that the UK is at the cutting edge of the genomics revolution that is shaping the 21st Century. High-growth companies, ambitious state-backed initiatives and world-leading institutions are being combined in the UK to create a truly unique opportunity.

The BIA is proud to have partnered with the Sanger Institute and MDC to celebrate the sector together. We hope that you enjoy reading the full report and feel free to join the discussion on Twitter under #GenomicsNation.

 

 

 

 

 

 

 

More within