Bio Technology has Growth Potential Despite Dip in Investment

Overall, the study showed that £1.8 billion was collected in total throughout 2022, which was a significant decrease compared to the £4.5 billion reported in 2021.

CEO of the Bioindustry Association, Steve Bates, expressed that everyone “expected a fall in investment following two bumper years” but “there is global capital to attract, as well as finance in the City of London we need to unlock, competition is fierce.”

In order to “leverage the private investment that drives the UK life science ecosystem,” the UK administration must be clear about their plans for R&D tax credits.

Bates continued: “the halving of R&D tax relief for SMEs without details of support” does not incite confidence.

Sitting at just 0.261 billion in 2012, the capital put into biotech has significantly risen over a ten-year duration.

In 2020, spending in the biotech sector grew by a historic 109%, propelled by the reaction to the pandemic, and the following year it increased by 60% to a peak sum of £4.506 billion.

The most recent study indicates that venture capital investment is flourishing, at £1.2 billion, and that an additional £3.7 billion is available. In comparison, public markets contributed less than £0.6 billion last year.

Mike Ward, global head of thought leadership at Clarivate, claimed that rather than being a measure of R&D success or promise, the international biotech industry was a reaction to macroeconomic variables.

“With assets originally created within biotech labs now accounting for almost 70% of pharma pipelines, an additional $40 billion raised by life sciences-focused funds, and an asset-hungry pharma industry, the global biotech sector still has the potential to see consequential growth.”

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