CEO Update - 27 January 2025
This week new BIA UK biotech financing report shows £3.5 billion invested in 2024, I detail the launch of the STVC Fellowship, look at the impact of the proposed US withdrawal from WHO, and news from Davos on groundbreaking AI-driven drug trials by Isomorphic Labs.
UK biotech financing report launch
Today the BIA release our annual UK biotech financing report. In 2024, the UK biotech sector raised £3.5 billion in investment - a remarkable 94% increase compared to 2023 and the highest annual figure since the record-breaking £4.5 billion in 2021.
Steve Bates OBE
CEO, BIA
This growth shows the resilience, innovation, and global appeal of the UK’s life sciences ecosystem, even amidst challenging economic conditions. As Europe’s leading destination for biotech venture capital, the UK continues to attract substantial international investment, cementing its position as a global hub for life sciences innovation. Notably, the report shows North American investors contributing their largest share of VC funding since 2021. Key highlights of the report include £2.06 billion in venture capital funding across 111 deals - a 64.8% increase from the previous year - and £1.5 billion raised on public markets, a 170% surge, largely driven by Nasdaq-listed UK companies.
However, we recognise it is still tough out there for many companies trying to raise money, as it is a handful of very big deals that are largely behind the high figures we're reporting today. As BIA Chair Dan Mahony and I say in a Sunday Times exclusive yesterday, this makes the government's and BIA's shared mission to unlock pension funds even more important, as there are many more quality companies in need of cash to start, scale and stay in the UK.
Science and Technology Venture Capital Fellowship launch
It was great to celebrate the launch of the first cohort of the UK’s new science and technology venture capital fellowship, run by the Royal Academy of Engineering and Imperial Business School, backed with UK government support last week. The scheme started this year as a direct result of BIA advocacy.
It’s designed to develop a new generation of homegrown investor talent in life sciences. As UK pension funds grow their interest in our sector, fellows will simultaneously develop the capability to deploy risk capital into high-potential life science ventures effectively. And this week many of the fellows will be attending the BIA Gala Dinner to get to know our community even better.
UK Covid-19 inquiry and UKHSA leadership changes
The UK Covid-19 inquiry rolls on and last week, Dame Kate Bingham, former head of the UK Vaccine Taskforce, gave oral evidence. She highlighted a lack of relevant expertise within key departments and expressed frustration over the government’s reluctance to procure Evusheld, a vital antibody treatment for immunocompromised individuals. There are important learnings from this inquiry and with transcripts and videos available we do not need to wait for reports in the years ahead to take the action needed.
This is particularly important now as Jenny Harries has informed stakeholders that she is stepping down as Chief Executive of the UK Health Security Agency (UKHSA) in early summer at the same time as the UKHSA’s Chief Scientific Adviser, Professor Isabel Oliver, will be leaving to take up the role of Chief Medical Officer for Wales. The UKHSA brings together Public Health England, NHS Test & Trace, the Joint Biosecurity Centre and critical teams from the Vaccine Task Force in a unique public health protection agency- getting the right new leadership engaged with industry will be vital.
US WHO withdrawal
The decision by the new US administration to announce its intention to withdraw from the World Health Organization (WHO) has been one of its first acts. Former UK PM Gordon Brown has counselled against the move, highlighting the risks of the vacuum such a withdrawal will invariably create, and this debate doesn’t look like it's ending fast. With UK's commitment to global health resolute, and capacity to innovate I will be keeping a close eye on if and where reform and change provide an opportunity for BIA member companies to work with the UK government on this agenda as we did during the pandemic.
Isomorphic expects AI-designed drugs in trials in 2025
BIA member Isomorphic Labs expects its AI-designed drugs to enter clinical trials this year. These comments, made by Sir Demis Hassabis during a Davos gathering last week, demonstrate the cutting-edge innovation driving the biotech sector. Isomorphic’s groundbreaking work highlights how AI is transforming drug development through advanced protein structure prediction.
The company’s partnerships with pharmaceutical giants like Eli Lilly and Novartis signal growing confidence in AI’s potential to reshape healthcare. The UK sits at the heart of this biotech revolution, and it’s inspiring to see BIA members continue to lead in shaping the future of medicine.
Oxford University and GSK partner on a new immuno-prevention programme to advance novel cancer research
It was also good to see a new £50 million collaboration between various parts of Oxford University and GSK, building on their five-year collaboration to establish the Oxford-GSK Institute of Molecular and Computational Medicine announced today. As Tony Wood, Chief Scientific Officer, GSK, said:
We’re pleased to further strengthen our relationship with Oxford University and to combine the deep knowledge of Oxford and GSK scientists. By exploring precancer biology and building on GSK’s expertise in the science of the immune system, we aim to generate key insights for people at risk of developing cancer.
I look forward to seeing many of you at our flagship event on Thursday - the BIA Gala Dinner. We are all set for a fantastic event and look forward to welcoming 750 of you at the roundhouse in Camden.
