UK Biotech raises £869 million in the year to 31 August

UK biotech companies are continuing to raise significant new funds despite investment across all sectors slowing, new data from the UK BioIndustry Association (BIA) and Informa Pharma Intelligence published today shows.

The quarterly financing update shows that a total of £869m has been raised by UK-based biotech companies for the year up to 31 August. Despite some companies securing large new investments, the total figures suggest that the sector is unlikely to exceed the record-breaking years of 2015 and 2018, when £1.9bn and £2.2bn was raised, respectively.

The report on fundraising activity in the third quarter shows:

• £114m was raised in venture capital investment by UK biotech companies between 1 June and 31 August 2019 (Q3)
• Juvanescence, a company researching health and life-extending technologies, achieved the largest fundraise, securing £82m
• £100m was raised in follow-on financing in public markets by UK biotech in Q3
• There were no Initial Public Offerings (IPOs) by UK or European biotech companies in Q3
• The UK slipped to fourth place in European venture financing behind Germany (£280m), Switzerland (£249m) and the Netherlands (£148m)

Steve Bates OBE, Chief Executive of the BIA said: “Across all sectors, companies looking to raise new funds are facing considerable headwinds at the moment. Not every year can be a record breaker for UK biotech and in this quarter, Brexit and global uncertainty are factors at the forefront of investors’ minds.

“It would be over simplistic to read longer-term trends from one quarter’s data, but the shape of some of the questions we may examine in our annual data report next year are starting to emerge. Is the British Business Bank stepping up fast enough to support UK life science venture funds as the European Investment Fund prepares for Brexit? And to what extent are new investors that are taking a greater interest in the UK, such as those from China, able to fund scaling companies to grow as Neil Woodford offloads many of his positions in our sector?

“The Prime Minister’s announcement on Sunday of a dedicated life sciences fund to support scaling companies shows the Government understands the challenge. This money will leverage in private sector investment, but it must work at both the pace and scale that growing companies in our sector need if we are to maintain the momentum of previous years.

“The Government must also seek to strengthen the sector at every stage of the innovation pipeline by refilling the Biomedical Catalyst, which has been a key Innovate UK scheme crowding in private sector investment into emerging companies.”

Funding announcements that came too late for this report, including £100m raised by Achilles Therapeutics and £60m financing at Immunocore, show that the long-term trend remains very positive for UK biotech. The BIA’s annual finance report for 2019, which will include Q4 data, will be published in late January 2020. 

Note to editors

1.  For more information, please contact BIA Media Relations and Communications Manager, Jack Fellows, 0207 630 2196 or 07825 942 934. Email [email protected]
    
2. To read the 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.