UK Biotech Sector Accelerates Growth with £3.5 Billion Investment Surge
The UK biotech sector has reached a landmark in 2024, raising £3.5 billion in investment, marking a 94% increase compared to the previous year. This represents the highest annual funding since 2021 and underscores the sector’s resilience, innovation, and global appeal, even amid challenging economic conditions.
The figures, released today in the BioIndustry Association’s (BIA) annual UK biotech financing report, show that investment was concentrated in a small number of high-value deals, with a significant proportion coming from US and international investors increasingly drawn to the UK’s thriving life sciences ecosystem.
Steve Bates OBE, Chief Executive of the BIA, commented:
“The UK is a global leader in biotech innovation and continues to attract the most venture capital in Europe. This year’s record figures highlight that our sector is a vibrant engine of growth, delivering pioneering research and developing therapies that tackle some of the world’s most urgent health challenges. International investor confidence is at an all-time high, reinforcing the UK’s position as a hotspot for life sciences investment.”
He added:
“While foreign investment is welcome, UK investors are missing out on an opportunity to benefit from this growth. Accelerated pension reforms are needed to enable UK institutional investors to participate fully in this thriving sector, creating jobs and supporting the economy.”
Key highlights from the BIA report include:
- Venture capital funding:£2.06 billion raised across 111 deals, the strongest performance since 2021, up 8%from 2023.
- Global appeal:North American investors accounted for 26% of venture capital funding, their largest share since 2021, while European investors contributed 15%, demonstrating the UK’s status as a magnet for international biotech investment.
- Public markets:£1.5 billion raised through follow-on financings, a 170% increase from 2023, with UK companies listed on Nasdaq leading these rounds, highlighting international recognition of the UK’s biotech innovation.
The UK government has identified life sciences as a key priority sector for its industrial strategy, recognising its potential to drive economic growth, innovation, and employment. Chancellor Rachel Reeves has also emphasised the importance of pension fund reform to boost investment in UK equities and growth industries.
The report confirms that the UK biotech sector is on a strong upward trajectory, powered by cutting-edge science and substantial foreign investment. Increased participation from UK financial institutions could further strengthen the sector, cementing the UK’s position as a global leader in life sciences innovation.
