UK biotech firms raise more than £1.5 billion so far this year exceeding the total raised in 2017
The UK BioIndustry Association (BIA) and Informa Pharma Intelligence have today released the Biotech Financing Update June - August 2018 that shows that UK biotech companies have already raised more than £1.5 billion in 2018, surpassing the 2017 annual total of £1.2 billion. In the second half of the year, the data shows an acceleration in venture capital fundraisings and an uplift in amounts raised in Initial Public Offerings (IPO).
Key figures from the Biotech Financing Update June - August 2018:
- Venture capital fundraising during the period accelerated, with over £462 million raised, double the total for the first half of the year.
- UK biotech companies raised £191.67 million through IPOs during this period.
- AIM has proved a valuable source of follow-on funding for UK biotechs during this period, providing over £77 million.
BIA CEO Steve Bates said: “In just 8 months of 2018, innovative UK biotech companies have surpassed the fundraising total reached in the whole of 2017, demonstrating the worldwide demand for the fantastic science coming out of the UK.
“The successful second half of the year follows changes to venture capital tax incentives which the BIA called for and which were implemented as part of the Patient Capital Review. We will continue to monitor sector data closely to assess the potential benefits of this on biotech investment.”
The report was launched at the BIA in the City event - “Biotech IPOs: what are we AIMing for?” where BIA member CEOs met with investors and experts from the AIM, NASDAQ and the Hong Kong exchanges to discuss the public markets. The report can be accessed on the BIA site here.
The BIA and Informa Pharma Intelligence will release their annual report on biotech financing for 2018 in January 2019.
Contact: Pamela Learmonth firstname.lastname@example.org 0207 630 2183
Notes to editors
Changes to venture capital incentives schemes
At the Autumn Statement 2017 HM Treasury announced the following changes:
- Doubling the annual allowance for people investing in knowledge-intensive companies through the Enterprise Investment Scheme (EIS) to £2 million. This received State Aid approval from the European Commission on 5 July 2018.
- Doubling the annual investment that knowledge-intensive companies can receive through the EIS and Venture Capital Trusts (VCT) to £10 million. Both these changes will be effective as of April 2018 and already have State Aid clearance. This received State Aid approval from the European Commission on 5 July 2018.
- Introducing further flexibility for these companies over how the 10-year maximum company age test for the first investment is applied.
- The Treasury will introduce a test to prevent investments in low-risk companies through these schemes, potentially targeting that money to truly innovative sectors.
- The June-August 2018 quarterly report can be accessed here.
About the BIA
Established over 25 years ago at the infancy of biotechnology, the BioIndustry Association (BIA) is the trade association for innovative enterprises involved in UK bioscience. Members include emerging and more established bioscience companies; pharmaceutical companies; academic, research and philanthropic organisations; and service providers to the bioscience sector. The BIA represents the interests of its members to a broad section of stakeholders, from government and regulators to patient groups and the media. 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.
About Informa Pharma Intelligence
Informa is a leading business intelligence, academic publishing, knowledge and events group. Its Pharma Intelligence Division provides specialist data, intelligence and insight to businesses and professionals around the world, helping them make better decisions, gain competitive advantage and enhance return on investment. From early phase and portfolio decisions to clinical research and development and commercial planning and analysis, our services include a suite of complementary subscription news, data and analysis services, expert analyst reports and consulting capabilities from the world’s leading pharma and healthcare R&D and business intelligence brands – Datamonitor Healthcare, Sitetrove, Trialtrove, Pharmaprojects, Medtrack, Biomedtracker, Scrip, Pink Sheet, In Vivo.