CEO Update - 11 November 2024
British Business Bank data shows life sciences is the sector to back for growth returns
New data from the British Business Bank, published last week, shows that investing in life sciences through Venture Capital provides substantial returns. Our message to the pensions industry is: “Come on in, the water is lovely.” Make an investment proven to offer good returns for your savers. This chart from the British Business Bank is key (DPI represents realised returns and is the one to focus on).
Steve Bates OBE
CEO, BIA
As part of the Mansion House Compact last year, many UK pension funds committed to investing a small portion of their funds in life sciences, aiming to generate returns for their savers while accelerating medicine development and job creation in the UK. The Compact states, with my emphasis added: “By signing this Compact, founding signatories express an intent, on a voluntary basis, to take meaningful action within 12 months to secure better outcomes for UK long-term savers by facilitating access to the higher net returns that can arise from investment in unlisted equities, which will also benefit high-growth UK companies including, but not limited to, those operating in fintech, life sciences, biotech, and clean technology sectors.”
The new British Business Bank data also shows that our sector attracts expert US investors and a few great European investors; however, UK pension money remains the missing piece. The venture equity funding gap between UK and US companies is bigger for life sciences than for any other sector.
Since the pension industry hasn’t yet seized this opportunity, we continue to work with the government to design an investment vehicle that makes it easier for them to access our sector, with the endeavour to grow companies to scale.
Mansion House speech – a moment the pensions industry backs UK life science?
The new data is timely as Chancellor Rachel Reeves delivers her first Mansion House speech this week, a key event in the government’s autumn economic calendar, alongside the Budget and the Investment Summit. I expect the pensions investment agenda to be addressed and will provide an update next week on any developments. Over the summer, we submitted detailed evidence to the government’s pensions investment review and advocated publicly in the Sunday Times this weekend.
Oxford Nanopore partners with NHS and UKHSA for a world-first 'early warning system' for pandemics
Last week, the government and Oxford Nanopore announced a new collaboration (also involving Genomics England, UK Biobank, and NHS England).
Patients in key hospitals with suspected severe acute respiratory infections will receive diagnoses within six hours, supporting the establishment of a new diagnostic system. This technology will allow monitoring of potential outbreaks of bacterial or viral diseases alongside antimicrobial resistance. This is part of an expansion of the metagenomics programme, and the data collected using Oxford Nanopore’s technology will be provided to the UK Health Security Agency, allowing quicker detection and action on emerging infectious diseases to be taken.
Genomics England will work strategically with Oxford Nanopore to gain further insights, including on cancer and rare diseases, to enable future breakthroughs in identifying genomic mutations that may be treatable and preventing these devastating conditions. UK Biobank will also continue working with Oxford Nanopore and the government to improve the insights from their data and translate these into impact for NHS patients.
Future of UK Life Sciences Regulation Conference: an outstanding success
On 6 November, the BIA brought together over 200 regulatory experts, industry leaders, and stakeholders with the senior leadership of the UK’s Medicines and Healthcare products Regulatory Agency (MHRA) at our flagship conference on the Future of UK Life Sciences Regulation in London. Delegates heard directly from a stellar lineup of speakers, covering insightful topics including the new UK clinical trials regulations, accelerated regulatory pathways and collaboration across the UK healthcare ecosystem, international recognition, data strategy and real-world data.
The event was a fantastic showcase of the BIA’s leading role in setting the regulatory agenda for innovative medicines. Baroness Merron, Parliamentary Under-Secretary of State, Department of Health and Social Care, and Dr June Raine, Chief Executive of the MHRA, delivered the keynote address, and Lord O’Shaughnessy gave an update on implementing the recommendations from the review into the UK commercial clinical trials landscape. We would like to pay tribute to the session chairs as well as thank expert speakers and delegates for a highly engaging event with some great discussions.
Sudlow Review
Professor Cathie Sudlow published her long-awaited review into UK Health data on Friday. The review, entitled ‘Uniting the UK's Health Data: A Huge Opportunity for Society’, sets out key recommendations for harnessing the UK’s various health data assets. A coordinated strategy for UK health data, overseen by a national data service, with senior leadership should help provide a joined-up data offer for the UK. As ever, the important thing will be in the execution of these recommendations, and we will be working with stakeholders in government to ensure they work for the innovative companies in our sector.
Join us for London Life Sciences Week 2024 – just a week away
London Life Sciences Week (LLSW) is the annual event that unites the global biotech community for a week of unparalleled networking and dealmaking. Less than a week away, global leaders are arriving in the UK, with the curtain-raising event set to happen for the first time this Sunday. This event brings together industry leaders, innovators, and investors to foster valuable partnerships within the life sciences sector. Be sure to check the website for details on over 50 events happening throughout the week and navigate through an array of unparalleled opportunities this November, unrivalled across the globe.
...and at #bioProcessUK in Liverpool next week
From LLSW, I’ll be heading directly to Liverpool for the 21st annual bioProcessUK conference. With over 350 delegates registered so far and a bustling exhibition, it promises to be an outstanding event. The final programme is available on the conference website, and we hope you’ll join us.
Highlights include pre-conference tours - a choice between three pioneering facilities on Tuesday, 19 November - the Material Innovation Facility, Digital Innovation Facility or the Pandemic Institute - followed by a pre-party at the Lutyens Crypt that evening. The conference itself is taking place on 20-21 November at St George's Hall, with the conference dinner hosted in the stunning Anglican Cathedral on Wednesday evening (20 November).
Budget webinar online recording available
Thank you to everyone who joined our post-budget webinar last week. Dr. Martin Turner and I outlined three major events that will define life sciences in 2024: the International Investment Summit, the Autumn Budget, and the upcoming Mansion House speech.
We emphasised the importance of securing R&D tax credits, noting that although maintaining the status quo may seem less exciting than additional credits being introduced, it represents a significant achievement given the backdrop of proposed cuts by Chancellor Jeremy Hunt in 2022.
I highlighted BIA’s persistent efforts in engaging with the HM Treasury over the years, which ultimately helped secure this outcome. If you have missed the webinar, the recording is available to view now.
