CEO Update - 10 February 2025

Driving UK biotech forward: innovation, investment and global leadership 

The UK’s biotech sector continues to break new ground, from sustainable medicine manufacturing to AI-driven healthcare advancements. This week, I analyse key developments shaping the industry, including the launch of the Sustainable Medicine Manufacturing Innovation Programme, the BIA’s role in the government’s Spending Review, and the UK’s leadership in cultivated meat. These milestones illustrate the sector’s ability to drive economic growth, improve patient outcomes, and reinforce the UK’s position as a global biotech powerhouse. 

BIA submits policy proposals to UK Government’s key Spending Review 

Steve Bates OBE
CEO, BIA

Last week, BIA formally submitted its recommendations for the government’s Spending Review, outlining key priorities to support the UK’s life sciences sector over the next five years. With the government recognizing life sciences as one of eight priority sectors under the Industrial Strategy, our submission focuses on six critical areas for growth: 

• Innovation – Strengthening the UK’s position as a global leader in biotech R&D. 

• Crowding in investment – Enhancing access to capital for scaling biotech companies. 

• Regulatory environment – Ensuring a competitive and agile regulatory landscape. 

• People and skills – Developing the workforce to meet the demands of a high-growth sector. 

• International partnerships and trade – Expanding global collaboration opportunities. 

• Energy and infrastructure – Supporting the advanced manufacturing capabilities needed for growth. 

Alongside the Spending Review, BIA has been closely involved in the government’s new Life Sciences Sector Plan, working with the Office for Life Sciences and Task and Finish Groups to shape policies that will drive investment and innovation. The Chancellor is set to announce the Spending Review conclusions on 11 June, and we will continue to champion the sector’s needs to ensure the UK remains an attractive destination for biotech businesses. Already there is much speculation in the media about the impact of proposed spending prioritisation across a range of areas. This is a vital debate in which we will use our full voice.  

Biomedical Catalyst: powering life sciences innovation  

A key programme that drives UK growth in early-stage life science companies is the Biomedical Catalyst run by Innovate UK. It’s vital this scheme continues in the next spending review period. Participating in the Biomedical Catalyst Showcase at the London Institute for Healthcare Engineering, with Dr Stella Peace, Interim Executive Chair at Innovate UK made me realise just how many successful UK scale-ups had made use of the catalyst fund. Key companies like Prespectum now valued at £590 million, Rinri with £10 million series A and $100 million Grey Wolf Therapeutics have all benefited from the programme on their journey.  

Whether it’s offering early validation for a company’s thesis, connecting management teams with venture capital, or funding a second programme to enable a strategic pivot when a lead programme falls short, the BMC plays a crucial role in the UK life sciences funding ecosystem. It is essential that we keep the spotlight on this vital initiative in the months ahead. By providing the capital and infrastructure needed to scale groundbreaking ideas, the BMC empowers biotech companies to translate cutting-edge science into life-changing treatments.

Pets at Home Brentford – the home of a world first in cultivated meat 

This week, Pets at Home in Brentford was the unlikely launchpad for a deep biotech revolution with the sales launch of Chick Bites, the world’s first dog treat made from lab-grown meat.  

Developed and manufactured by UK biotech firm Meatly, this product uses cultivated chicken cells combined with plant-based ingredients, offering a sustainable alternative to conventional pet food. Pets at Home which has invested in the manufacturer, is the first company in the world to sell cultivated meat for pet food.  

The retailer’s COO Anja Madsen said:

This innovation has the potential to significantly reduce the environmental impact of pet food and will be a gamechanger for the industry.

The significance of this breakthrough extends far beyond the pet food market and shows the UK is able to deliver innovative regulatory approval for novel bio-based products. The UK became the first country in Europe to back cultivated meat for use in pet food last July after Meatly’s produced chicken was approved by the Department for Environment, Food and Rural Affairs (DEFRA) and the Animal and Plant Health Agency. This signals strong government support for biotech-driven sustainability solutions. With Meatly planning to scale production, this innovation highlights the UK’s leadership in cellular agriculture and our sector’s potential to transform food production systems worldwide. 

As Meatly’s CEO Owen Ensor put it, this achievement is a “giant leap forward” for the sector. It’s a clear example of how UK biotech is pioneering sustainable alternatives across industries, demonstrating that science and business can work together to drive positive global change. 

Unlocking sustainable innovation in medicine manufacturing 

Last week marked the launch of the Sustainable Medicine Manufacturing Innovation Programme (SMMIP), a key initiative aimed at fostering collaboration and driving progress toward net-zero pharmaceutical manufacturing. The showcase event highlighted the successful expression of interest (EoI) projects, which will now receive seed funding to build consortia and develop proposals for future Grand Challenges - large-scale collaborative R&D projects worth up to £10 million each. Do consider participating  

Funded through the Voluntary Scheme for Branded Medicines Pricing, Access, and Growth (VPAG), SMMIP represents a critical investment in the UK’s life sciences infrastructure. I encourage companies to engage with this programme, as the diversity and ambition of the showcased projects demonstrate the UK’s capacity for innovation in sustainable medicine manufacturing. By providing the scale, speed, and support to develop cutting-edge solutions, this initiative will strengthen our biotech sector and its contribution to global health. 

Health minister sacked for offensive WhatsApps as Wes Streeting repositions NHS on DEI

This weekend Health Minister Andrew Gwynne was sacked by Keir Starmer over offensive WhatsApp comments. This overshadowed an important article in the Sun on Sunday by Health Secretary Wes Streeting as we look forward to our 'Big WIB' - Women in Biotech gathering in Cambridge next month.  

In his argument for the NHS to get “back to basics” on DEI, he questions the current approach stating: "If the equalities agendas agenda doesn’t speak the working class man in me as much as the gay man, or as it should to my sisters or black and Asian friends, then what is it for? Who is it for?” He further challenges the direction of NHS policies, asking: “How is it that the value of equality became so distorted, that the NHS was funding a member of staff who described their practice as ‘anti-whiteness’?” and “How is that, in the name of inclusion, the word ‘woman’ has been erased from NHS documents?”

AstraZeneca’s global success strengthens UK life sciences 

AstraZeneca continues to set the benchmark for innovation in global life sciences. It’s the UK’s largest firm by market cap at £180 billion and released well-received annual financial results this week. I always find listening to CEO Pascal Soriot and the top team analyst call a useful insight into what makes a global leader in our sector tick. Speaking to investors he said:

The exciting part of our industry at this point is, it's also the scary part, I must say, is that, the innovation is incredible. And the speed of replacement of technology is incredible. And that's why I believe I continue to believe that being focused on a few key therapy areas and building competence, building expertise is fundamental. 

Our approach is really we continue to focus on oncology, respiratory disease, cardiovascular disease. Immunology, we want to address it through a few products we are working on, but also cell therapy, we believe, could be a very important angle to treat some of these immune diseases and, of course, finally, rare diseases. But we will continue to stay focused on this and build access to new technologies. We've talked about ADC, T cell engager, cell therapy, bispecifics, radiopharmaceuticals.

It’s clear to see that AstraZeneca’s performance is centred in its robust strategy and commitment to R&D, which is great for our broader sector.  So I dug into one product in development that was highlighted by analysts' questions on the AstraZeneca earnings call – AZD5004. Sharon Barr, the new Executive Vice President of BioPharmaceuticals R&D explained that she envisioned this new oral GLP1 as a monotherapy in obesity and in combination with other small molecules already in the AZ portfolio. She explained that her thinking was moving beyond short-term weight loss targets to the interconnectedness of cardiovascular, renal and metabolic disease.

What’s interesting for our ecosystem is that a key AstraZeneca trial, the Phase IIb randomized, double-blind, placebo-controlled study to evaluate the efficacy, safety and tolerability of AZD5004 in participants living with obesity or overweight with comorbidity is being led from the UK with the Principal Investigator Professor Melanie Davies at the University of Leicester this year. There are study sites in Blackpool, Rotherham, Chesterfield, Leicester, Witney and Bristol. 

It is vital that trials like this deliver to time and target so the UK stays at the forefront of research and development for a company that will have seven new medicines deliver late-stage Phase III data in 2025. As the UK’s most valuable public company, AstraZeneca’s success helps strengthen the UK life sciences ecosystem.  

Looking ahead 

These developments illustrate the vibrancy of the UK biotech sector. From sustainable medicine manufacturing and cultivated meat to AI-powered healthcare and major industry investments, the UK continues to push the boundaries of scientific and commercial innovation. 

The BioIndustry Association remains committed to advocating for policies that support biotech growth, attract investment, and accelerate innovation. With the Spending Review, the new Life Sciences Sector Plan, and ongoing breakthroughs in biotech, 2025 is shaping up to be a pivotal year for our industry. 

Let’s continue working together to drive the future of UK biotech.