CEO Update - 24 March 2025

It’s Spring Statement week and we have a webinar on what it means for the sector this Friday; also in this blog - why VPAG needs sorting and a new Series C raise for a BIA member, Brainomix. 

Spring Statement to dominate week - join our webinar

The Chancellor’s Spring Statement will explain how the government plans to drive economic growth and cut inefficiency from state spending, at a time when long standing security normalities are up in the air for Europe.

Steve Bates OBE
CEO, BIA

It presents a great opportunity for the Chancellor to put rocket boosters on the Mansion House agenda to get UK pension funds to invest in UK innovation. Also, more detail has emerged on where the cuts may fall in civil service efficiency as the practicalities surrounding the abolition of NHS England become clearer. We will endeavour to explain what it means for our sector in a webinar for members on Friday - if you would like to hear more, please sign up to our webinar.

VPAG needs sorting

An important agenda for our sector in government spending terms are developments surrounding the Voluntary Scheme for Branded Medicines, Pricing, Access and Growth (VPAG).

Read my latest blog on this matter, following the news that the government is proposing  to raise the Statutory Scheme payment rate for newer branded medicines from 15.5% to 32.2% of subject companies' NHS sales revenues in the second half of 2025. This means the UK is set to demand a third of pharmaceutical company revenue from NHS sales in the second half of 2025, by law, in parliament.

The ABPI, who negotiated the voluntary deal that sits alongside the statutory scheme, with the government have issued a detailed report on the challenges of the current scheme that is worthy of your time. My argument, which I’ll develop at the NICE conference in Manchester on Thursday 27 March, is that, as the UK develops the NHS ten-year plan, we need to prioritise and invest the part of health spending that delivers outcomes for NHS patients-innovative drugs. This will resonate with many global pharma CEOs who are coming to the UK soon, and who make a large percentage of global life science investment calls. Success here can deliver health and wealth for the UK. The case for increasing spending on drugs is homegrown in the UK – without the need for think tanks in the USA arguing for US policies to end global freeloading.

Brainomix raise Series C

Congratulations to BIA member company Brainomix who have secured a £14 million Series C funding round to propel its groundbreaking AI imaging technology forward. Brainomix's success shows that it is possible for companies to develop, grow and thrive within the UK. Their technology enhances diagnostic accuracy and treatment decisions in areas like stroke care and lung disease management. 

Engineering biology: government responds to House of Lords committee report

I was pleased to see that the government has welcomed the House of Lords Science & Technology Committee’s report on engineering biology. We’ve led the charge at the BIA, making the case that engineering biology 'offers the potential for significant economic growth and impact across multiple industries' and that the UK 'is an excellent place to research, develop and apply' the field.

DSIT has announced it will explore the feasibility of appointing a national sector champion for the field. Meanwhile, government are to find opportunities for the sector through the National Wealth Fund and procurement levers. Now the upcoming spending review and industrial strategy become key – but it is a testament to our hard work that this is at the heart of the government’s agenda so thanks to all members who have helped here.

Oligos explainer - just published! 

Our latest report, Oligos explainer: A new frontier of precision medicine, dives into the transformative world of oligonucleotide therapies, an emerging class of complex medicines, that are revolutionising how we treat diseases, from rare genetic disorders to broader applications in protein regulation. The report highlights the UK's position in the rapidly evolving field of oligonucleotide therapeutics and aims to explain the science, history, opportunity and manufacturing challenges of oligos to a non-expert audience. It introduces some of the key UK players at the forefront of this exciting field and explains how and why we can establish ourselves as a global industrial leader. I invite you to explore the report and see firsthand the future we are building together.

Programme for Up-and-coming Life Science Entrepreneurs (PULSE)

Our eighth annual PULSE was fantastic! It was great to see the enthusiasm, talent and drive of this year's cohort. The three-day course enables early-stage entrepreneurs to rapidly build their network and work on their business plans. We look forward to this new generation of BIA member companies growing and succeeding and it was great to hear one attendee describe the experience as ‘a real turning point.’

I was delighted to entice Paul Nurse in to see the talent on show as the scheme is hosted in collaboration with the Francis Crick Institute. Thank you to many of the mentors and experienced heads who gave their time and experience for free last week – we can't do this without you!

EuropaBio - new vision

The BIA are the UK's national association member of EuropaBio. The recent publication of the EuropaBio report on the state of biotech within the EU is of great interest. Several findings from the report struck me, such as the following:

• Gross value added (GVA) from biotechnology hit €38.1 billion in 2022, almost doubling from 2008.  
• Overall, biotechnology is one of the most economically productive industries, generating €160,000 GVA per person employed in 2022, 2.85 times higher than the total EU economy and higher than sectors including finance, ICT and automotive.
• Employment growth through biotechnology is six times higher than the overall EU economy.

As the UK and EU reset relations through 2025, the report precisely puts things:

Very few other sectors enhance health, quality of life, knowledge, industrial process innovation, productivity, and environmental protection as biotechnology does.

Combining where appropriate, and working together with colleagues across Europe remains at the heart of the BIA’s mission for members.

BIO Spring Europe

At last week's BioSpring Europe conference in Milan, numerous UK companies and BIA members illustrated their expertise and innovation. Among the highlights was the participation of our distinguished board member, Laura Lane, VP of Lilly Ventures (Europe Head) at Eli Lilly and Company, who delivered a compelling fireside chat on the evolving landscape of biotech investment.

I extend my sincere gratitude to BioPartner UK for their exemplary efforts in coordinating the UK pavilion.

BIA response to consultation on biodiversity

We’ve continued to input into the global biodiversity policy discussion following the Conference of the Party's (COP) 16th meeting in Colombia last year. We’ve submitted a formal response to the Convention on Biological Diversity (CBD), explaining how small biotech companies are part of the solution, not part of the problem, and that we stand ready to play our part in the biodiversity challenge.

We’ve been concerned that the voice of SMEs in this space has not been easily heard in this debate, with unworkable policies often proposed, and are keen to keep information channels open with real-life examples.