UK biotech on “positive trajectory”, says BIA

A new report from the BioIndustry Association (BIA) shows that investment in the UK’s biotech sector grew significantly in 2024. At £3.5 billion, investment raised in 2024 increased by 94 percent compared to 2023. This is the highest figure since 2021 (£4.5 billion), and originated “primarily from US investors” in a small number of companies, the authors explained.

“This year’s figures demonstrate that biotech is a vibrant growth sector of the UK economy with an exceptional ability to attract global investment… The strong international investor interest we’ve seen this year reaffirms global confidence in the UK’s life sciences innovation ecosystem. However, while foreign investment is welcome, UK investors are missing out on an opportunity to benefit from a UK growth industry and financial returns and jobs are being lost from the British economy as a result,” shared Steve Bates OBE, CEO of the BIA.

Key highlights from the report include:
• A 64.8 percent increase in venture capital funding from 2023
• A surge in international capital, with North America accounting for 26 percent of venture capital investors in the UK biotech sector. Comparatively, European investors made up 15 percent of these investors.
• Global recognition of the UK’s biotech innovation, as seen from the 170 percent increase from 2023 from follow-on financings.

Positive momentum for the UK biotech sector

Overall, the UK’s biotech sector “is on a positive trajectory, powered by cutting-edge science and significant foreign investment, which could be bolstered by greater participation from UK financial institutions”, BIA summarised.

These findings back research published last year by the BIA in collaboration with Citeline, which concluded that UK’s cell and gene therapy sector was “robust”. Companies in the UK secured 55 percent of Europe’s cell and gene therapy venture capital funding in 2023, the report highlighted.