Despite global economic uncertainty, the UK biotech sector raised £1.3 billion in 2019, industry figures show.
According to the UK BioIndustry Association (BIA) and Informa Pharma Intelligence, 2019’s figure is the third highest year recorded by the trade association and, since 2012, investment has increased by over 400%.
Of the £1.3 billion, more than £679 million was raised in venture capital; £64 million in Initial Public Offerings (IPOs), and £596 million in all other public financings.
The figures show that the biotech sector has enjoyed five consecutive years of raising over £1 billion-plus investment. The UK has therefore remained the leading cluster in Europe for amounts raise through venture capital.
“The UK biotech sector continues to chart an ambitious global path. With five consecutive years of raising over £1billion and a 400% increase in investments since 2012, the sector is in a very strong position heading into a new decade,” said Steve Bates, Chief Executive of the BIA.
“It’s clear that UK biotech companies remain an attractive investment opportunity for global investors, meaning there’s a greater diversity of capital than we saw five years ago.
“However, while we welcome overseas investment, diversifying the domestic life sciences investor base is critical to capturing the full benefits of this key sector of the UK economy.
“Government efforts to leverage new scale-up capital through the British Business Bank and the UK pension funds industry should be stepped up, as should grant funding for early-stage companies through the Biomedical Catalyst.”