UK biotech holds firm in the first half of 2025, BIA report finds

London, 28 July 2025 – The BioIndustry Association today publishes new data revealing that the UK’s life sciences sector attracted £1.23 billion in venture capital (VC) investment in the first half of 2025, thereby putting it on track to match or surpass 2024’s total.

The first quarter, which saw a record-breaking £881 million, was boosted by two landmark financings: Isomorphic Labs (£449 million) and Verdiva Bio (£327 million). Meanwhile, the second quarter fell in line with global trends to £344 million and, though it saw fewer megadeals, is significant not just through highlighting the exceptional quarter preceding it but also by way of standout raises from Draig Therapeutics (£107 million) and CellCentric (£90.3 million), which communicate continuing dynamism in the sector. Draig Therapeutics' raise included the first biotech investment from Schroders’ UK Innovation Long-Term Asset Fund (LTAF), a landmark step forward for unlocking institutional capital from the City of London, something BIA has long called for.

Steve Bates OBE, Chief Executive of the BIA, said:

In a tough global financing landscape, UK biotech raises from Draig Therapeutics and CellCentric demonstrate our sector’s continued ability to attract substantial investment. MSD’s £10 billion acquisition of Verona and Sanofi’s acquisition of Vicebio for $1.15 billion, both this month, show that global pharmaceutical companies continue to look to the UK’s innovative life science ecosystem to acquire future products.

Dr Martin Turner, Director of Policy and External Affairs, said:

Much of the value created by UK life science companies being acquired this quarter hasn’t been realised by UK investors or the City of London. However, we are observing a structural evolution in the funding environment, as the Mansion House agenda is being turned from a government policy agenda to practical funding vehicles for scaling companies by key institutions like the British Business Bank and Syncona. This provides new routes for UK investors, including pension savers, to access and benefit from exciting innovative companies, if they seize the opportunity.

Other key findings:

• The UK remained Europe’s top biotech investment destination in Q2, accounting for 28% of total VC raised in the region.
• Investor caution was seen globally as US biotech funding dropped 24% quarter-on-quarter to £3.96 billion and European biotech funding fell 40% to £1.23 billion.

Read the report at biotechfinance.org