BIA update – 26 January 2026
Our UK biotech financing 2025 report is out today, including data and commentary on how the biotech investment landscape fared last year. 2025 was a brutal year for the sector, but an upswing in deal numbers going into 2026 and recent capital injections give good reason to be optimistic.
We are looking forward to celebrating the sector and raising awareness and funds for our Charity Partner of the year, Muscular Dystrophy UK, at the BIA Gala Dinner on Thursday. If you are one of the 760 with a ticket, I will see you there!
Jane Wall
Managing Director, BIA
End of 2025 uptick shows positive outlook
Our 2025 UK biotech financing report – published today – highlights the UK life sciences sector as a global beacon of innovation, demonstrating quality, resilience and agility in the face of a complex and challenging global financing landscape. 2025 was a year of caution and strategic maturation, with the headline venture capital figure of £1.8 billion representing a 13.2% decrease from the previous year – but the UK still clearly leads Europe, and 2026 has already seen more flow and optimism.
Crucially, the report highlights that 2025 was the year the UK saw the beginnings of a move from policy architecture to deployment. The launch of the Life Sciences Sector Plan in July, alongside the Mansion House Accord in May, has finally unlocked the path for domestic pension capital to fuel UK innovation. We have already seen the first fruits of this shift in the Draig Therapeutics financing, a company created by SV Health Investors, which was the first life sciences investment from Schroders Capital LTAF, proving that "Pension Power" is no longer a concept but a reality.
The BIA remains committed to ensuring the UK is not just a place where world-class science starts, but where it stays, grows, and thrives. This report is a testament to our sector’s resilience and a roadmap for the breakthrough decade ahead.
British Business Bank invests £50 million into Epidarex Capital
This is coupled with the news that the British Business Bank made a £50 million cornerstone commitment to BIA member Epidarex Capital’s next fund – another win for the sector. Epidarex invests in high-growth life science companies, often partnering with leading medical universities and research institutions – providing Seed and Series A funding to transform innovative science into the next generation of drugs and medical devices.
Between 2022 and 2024, almost a quarter (24%) of university spinout deals were supported by the British Business Bank, demonstrating its ongoing role in supporting the commercialisation of cutting-edge scientific research.
Infinitopes closes excellent seed financing round
More good news last week when BIA member Infinitopes, a clinical-stage cancer vaccine biotechnology company, announced the successful completion of the second close of its seed financing round, securing an additional $15.4 million and bringing the total raised to $35.1 million.
This funding comes as the company launches its first-in-human, double-blind, randomised, placebo-controlled clinical trial of ITOP1, across multiple UK NHS university cancer centres. Paul Smith, VP Regulatory Affairs at Infinitopes, chaired the clinical trials session at our The Future of UK Life Sciences Regulation Conference in November, leading a discussion about how the UK can be the premier destination for innovative clinical trials. Infinitopes was a part of MHRA’s Innovative Licensing & Access Pathway (ILAP), allowing it to design advanced trials for new medicines with high potential to improve care, for the most challenging diseases. ILAP enables pathways to work faster and more efficiently towards important endpoints.
As the Government's 150-day target for clinical trial set up approaches in March, the BIA is continuing to engage closely with all parts of the UK's clinical trials ecosystem to deliver on this ambition and support homegrown SMEs like Infinitopes to deliver transformative research and innovation.
UCB receives £500 million from the Government life sciences fund
A further boost last week when BIA member UCB, a global biopharma company focused on severe diseases, received an approximate £500 million investment from the Government’s Life Sciences Innovative Manufacturing Fund (LSIMF) to support its ongoing investment in R&D in the UK. The investment safeguards and grows highly skilled jobs, secures long-term capacity for advanced biologics and antibody manufacturing, and sends a powerful signal that the UK remains an attractive destination for globally mobile investment.
The investment underlines how targeted government support can unlock private capital, strengthen supply chains, and keep the UK competitive on the global stage.
The BIA were pleased to have advocated for the launch of the £520 million capital grants programme, Life Sciences Innovative Manufacturing Fund (LSIMF), and we continue to help shape the fund to ensure it is accessible to SMEs and ensure even and predictable distribution of funds.
Reimbursing visa fees for trailblazers
Global leaders gathered in Davos, where the UK government announced its drive to make the UK the destination of choice for top global talent shaping the future with the Chancellor announcing that visa fees will be reimbursed for select trailblazers in priority sectors. Global companies will also find it quicker to expand in Britain via a new offer to fast-track their sponsor licenses.
The BIA welcomes this move from government to champion global talent and bring them to the UK. Attracting top talent is essential for the health and growth of the UK life sciences sector and has long been a focus of the BIA. Much of our work has focused on the Global Talent Visa – highlighting the need to communicate the opportunity more effectively to industry – and while these new measures are more targeted, they are an important and welcome step to delivering the much-needed talent that forms the backbone to our sector.
LeaP kick-off this week
Lastly, this Wednesday we will see the LeaP kick-off meeting, bringing together 190 LeaPers from 52 organisations over nine cohorts. LeaP is designed to empower emerging leaders in bioprocessing with the skills, confidence and connections to accelerate their careers. Through peer-to-peer networking, site visits and knowledge sharing, as well as mentorship and “lunch and learn” sessions from industry leaders, participants gain the practical tools and insight needed to lead effectively in a rapidly evolving sector.
DSIT survey on synthetic nucleic acid screening
We would like to invite our members to take part in a short survey being run by RAND Europe on behalf of the Department for Science, Innovation and Technology (DSIT). The survey aims to understand how the UK’s voluntary guidance on screening synthetic nucleic acids is being implemented in practice.
There are two versions of the survey for providers of synthetic nucleic acids and users of synthetic nucleic acids. Please get your responses in by Friday 30 January, 17:00. We would strongly encourage you to complete the relevant survey if your organisation is involved in providing or using synthetic nucleic acids, as this is a direct opportunity to help shape future policy in this space.
