BIA update - 27 October 2025
The UK biotech financing numbers for Q3 are out, showing validation of UK assets but a sector under strain from prolonged global headwinds. Time to double down on investment in innovation as a driver for growth and deploy Industrial Strategy plans with urgency.
The UK is embracing a pro-innovation regulatory agenda - ploughing ahead with the AI Growth Lab and the Regulatory Innovation Office, celebrating ‘One year on’. Our Future of UK Life Sciences Regulation conference is next week (Thursday, 6 November), bringing together key stakeholders on clinical trials, patient access and smart regulation – sign up now!
Jane Wall
Managing Director, BIA
Q3 2025 UK biotech financing report: sector resilience, policy urgency
Our Q3 2025 UK biotech financing report is out today, providing essential data that confirms both the immense value and the current fragility of the UK life sciences sector.
While the quarter saw landmark validation of UK science, exemplified by the £1.18 billion acquisition of ViceBio by global player Sanofi, the overall Q3 figures reflect a fragile sector under strain from the prolonged global headwinds.
As we head towards the Autumn Budget, the message to government is clear: this is the time to double down on investment and the Industrial Strategy, not look for short-term cost savings.
We are urging Rachel Reeves to accelerate the delivery of the Industrial Strategy, deploy investment through the British Business Bank, enhance R&D tax reliefs, VC tax incentives, and the Enterprise Management Incentive, and unlock UK pension capital. Read our Autumn Budget submission and keep an eye on your inbox for an opportunity to add your voice to our campaign.
The new data provides the government with evidence that there is both great opportunity and great urgency to back innovation and cement the UK’s position as a global life sciences powerhouse.
We encourage all members to read the latest report and support our collective advocacy efforts ahead of the Autumn Budget.
Advancing AI regulation and funding
We welcome the Government's announcement of plans for an AI Growth Lab. This 'testing ground' approach is a crucial step towards fostering innovation by allowing regulation to be circumvented in a controlled, supervised way, which should bring innovation to market more efficiently.
We will be responding to the call for evidence on the AI growth lab proposals. Please get in touch with Emma if you’d like to contribute. Additionally, £1 million is being set aside to support the MHRA pilot AI-assisted tools, which will support drug discovery and clinical trial assessments.
Regulatory Innovation Office: one year on
Our influence on the broader UK regulatory landscape continues, with the BIA being quoted in the new Regulatory Innovation Office (RIO) 'One year on' report, published by HM Treasury and DBT.
The RIO was established in October 2024 to provide UK science businesses with the confidence to attract investment and scale up. We remain committed to working with RIO to ensure regulation is pro-innovation. Our quote highlights the RIO’s essential role in ensuring the ecosystem works for innovators:
RIO’s role has been critical, with the purview to look at regulation holistically and to consider how overlapping frameworks affect the innovation pipeline.
Oxford and Cambridge get infrastructure investment boost
Oxford and Cambridge continue to drive significant government and private sector investment. This week, the government confirmed a £120 million pledge to reopen the Cowley Branch Line in Oxford. This initiative is supported by a critical public-private partnership, with the Ellison Institute of Technology (EIT) committing £35 million with other local partners toward the project, including designing and constructing the new Littlemore station.
This infrastructure forms part of the total £500 million investment into creating the Oxford-Cambridge Growth Corridor, with Patrick Vallance, Minister of State for Science, Research and Innovation, appointed as ‘champion’. Simultaneously, the Innovate Cambridge Summit this week reaffirmed the strategic importance of the corridor, with Patrick Vallance highlighting the need for "pace and purpose" to achieve exponential growth. This long-term focus also includes £15 million in funding for the new Cambridge Innovation Hub, positioning the Supercluster, in the words of Sir Nigel Wilson, former CEO of Legal & General and Chair of Cambridge Innovation Capital and Canary Wharf Group, as "the single biggest investment opportunity in the UK."
London Life Sciences Week: 16-21 November
London Life Sciences Week is quickly approaching. Mark your calendars for 16-21 November! Launched by the BIA, MedCity, and London & Partners, London Life Sciences Week is a premier gathering of the global biotech and investment community for a dynamic week of unparalleled networking and dealmaking.
Taking place during Jefferies, London Life Sciences Week will be a unique opportunity to connect with over 1,300 senior decision-makers, global investors, and UK life sciences companies at many different events running throughout the week. Explore the 2025 schedule and watch out for the announcement of the networking app coming very soon, powered by partneringONE. BIA members will also have exclusive use of the member lounge at Victoria House from 17-20 November.
Boosting female entrepreneurship in science
We were pleased to see the launch of the Commons Committee report on female entrepreneurship, which drew on research from King's Business School. The report's overarching call for action is welcomed, and it aligns closely with the BIA’s own findings regarding the need to increase diversity in our sector's leadership and founding teams.
We will continue to highlight the specific challenges for women in biotech leadership as we work to amplify these recommendations and ensure they drive real change for high-growth innovative science businesses. Join us to continue this conversation at our final networking event of the year, Women in Biotech in London on Tuesday, 10 December.
