Biotech financing update: Mar 2022 - May 2022

The UK biotech sector has continued to attract investment despite global economic headwinds impacting all sectors, new data published by the UK BioIndustry Association (BIA) and Clarivate shows today (30 June 2022). The data has been published as biotech leaders visit the Houses of Parliament to press policymakers to make the most of the UK’s competitive advantage to be at the forefront of global innovation in the 21st century.

The new data on equity investment in the UK biotech and life sciences sector between March and May 2022 shows £450 million was raised, compared to £481 million in the first quarter of 2022. This included:

• £277 million in venture capital, down 39% from £453 million in Q1 2022
• £173 million in public follow-on financings, up 4,666% from £3.55 million in Q1 2022
• £4.5 million in initial public offerings (IPOs), down 81% from £24 million in Q1 2022

The fall in venture investment is a concern for the sector as it suggests the downturn on NASDAQ may be beginning to filter through to the private markets. The fall in venture capital was compensated for by a large £135 million investment in Amsterdam-listed BenevolentAI, meaning the total for Q2 was approximately level with the first quarter of 2022.

The sector has also been buoyed by the recent announcement that mRNA vaccine pioneer Moderna has chosen the UK for a new R&D centre, which will be followed by a manufacturing centre.

Over 30 CEOs and senior representatives of the UK sector are attending the BIA’s 22nd annual Parliament Day to meet policymakers. They are calling on the Government to:

• Increase public and private investment in the sector by committing to an expanded Biomedical Catalyst grant funding programme and unlocking pension funds for investment in innovative businesses
• Improve patients’ access to innovative medicines, such as cell and gene therapies, with new flexible routes for evaluation, uptake and reimbursement.
• Ensure Government policy and R&D funding allows the UK to lead the world in emerging technologies to capture the social, environmental and economic benefits of biotech and life sciences beyond healthcare