Investment in UK biotech remains strong latest data from the BIA shows
New figures published today (Monday 22 June 2020) by the UK BioIndustry Association (BIA) and Clarivate reveal that the UK biotech sector raised £585million from March to May 2020. A total of £894m has now been raised from all sources in the first half of 2020, surpassing the £831m raised in the same period in 2018, which was a record-breaking year.
While no IPO’s have been registered, venture capital and follow-on financing during this period came in at £348m and £237m respectively. This is despite expectations that the COVID-19 pandemic would severely affect investments over this period. However, seed and early-stage VC deals have been heavily suppressed.
Steve Bates OBE, Chief Executive of the BIA said: “The UK biotech and life sciences industry has shown its strength during this pandemic as the sector works at pace to provide COVID-19 vaccines, therapies and tests to help society return to work and get economies around the globe back on track. This has been backed by investor confidence as capital flows into the sector have remained strong despite the COVID-19 pandemic.
“This quarter we have also seen strong share performances for public biotech and life science companies on the London exchanges, with AstraZeneca topping the FTSE 100 and Silence Therapeutics seeing an almost ten-fold increase in its share price in the past year on AIM.
“The UK Government’s active role through the Life Sciences Industrial Strategy funding schemes such as the Biomedical Catalyst should provide confidence to investors that their money is being de-risked. The recent intervention of the Future Fund to support early-stage innovative firms during the crisis, which our data shows was and remains needed, also demonstrates the Government’s commitment to supporting the sector.
“We are in a new investment landscape, with previously profitable industries struggling with the impacts of COVID-19. For domestic pension providers and investors, there is a clear opportunity to seize this moment and put their funds on positive growth tracks by investing in UK biotech, which in the past has been under-ventured in comparison to the US and China. Investing early with innovative life sciences companies can lead to significant upside in the long term”
Notes to editors
1. For further information and briefings please contact Jack Fellows, Communication and Media Manager at the BIA on 07825942934 or jfellows@bioindustry
2. To see the full report, please follow this link.
About the BIA
Established over 25 years ago at the infancy of biotechnology, the BioIndustry Association (BIA) is the trade association for innovative life sciences in the UK. Our goal is to secure the UK's position as a global hub and as the best location for innovative research and commercialisation, enabling our world-leading research base to deliver healthcare solutions that can truly make a difference to people's lives.