CEO Update - 31 March 2025
President Trump’s “Liberation Day” announcement on 2 April 2025 could disrupt biotech, with BIO’s survey showing 90% of US biotech firms relying on imports for FDA-approved products. In addition, news from the mRNA vaccine progress, new lab spaces and Innovate UK’s new leadership.
Standing ready for “Liberation Day”
President Trump is promising to announce imposition of reciprocal tariffs against a wide number of countries on 2 April, a date the President calls "liberation day." While the White House is still deliberating on exactly how it will implement tariff plans, they could be highly disruptive with wide ranging effects on the US and global economy.
Steve Bates OBE
CEO, BIA
That’s why our friends at BIO in the USA released their survey of members, highlighting that such a policy could impede access to cures and stifle innovation. According to the findings, nearly 90% of US biotech companies rely on imported components for at least half of their FDA-approved products - making the supply of medicines for US patients and families especially vulnerable to proposed tariffs. While nothing is certain, this week we stand ready to explain the details, hear from members what support they may need and monitor the impact of any proposals.
Spring Statement: R&D relief in focus amid mixed signals for life sciences
In her Spring Statement, Chancellor Rachel Reeves prioritised balancing the books and increasing the defence budget, but a closer look at the supplementary documents reveals some developments for the life sciences sector. The government is taking decisive action on R&D tax relief by launching a consultation to crack down on tax advisers promoting fraudulent claims—an issue BIA has repeatedly raised to protect the scheme’s integrity. This is paired with the recruitment of 500 additional HMRC compliance inspectors, who could help ease the scrutiny on compliant sectors like ours. Another consultation on reforming advance clearances for R&D tax relief, spurred by BIA discussions with officials and ministers, shows responsiveness, even if such clearances may not fully suit life sciences firms confident in their R&D eligibility. The Statement also reaffirmed a commitment to making the UK a prime destination for start-ups and scale-ups, with plans to review Enterprise Management Incentives (EMIs), venture capital incentives, and employee tax treatments, alongside a new private shares trading venue (PISCES). However, a 5% rise in visa costs is a setback for a sector already grappling with attracting global talent. Overall, the Statement shows that innovative life sciences companies remain a priority, opening the door for constructive engagement—something BIA will pursue vigorously on your behalf.
We took a look at the spring Statement by the chancellor in a webinar we recorded last Friday – deep diving into some of the R&D tax credit changes and plans for ISAs – watch the webinar.
UK takes the lead in precision fermentation with FSA’s £1.4 million innovation boost
The Food Standards Agency (FSA) has announced a £1.4 million funding tranche to advance regulatory science and knowledge around precision fermentation. For those unfamiliar, precision fermentation is a cutting-edge form of engineering biology that harnesses microbes to produce proteins and other compounds—like sugars and fats—for food applications.
This investment marks one of the first major actions of the new Regulatory Innovation Office (RIO), and it positions the UK as a frontrunner in regulatory innovation within the food sector. Building on the FSA’s pioneering work, such as its sandbox for cultivated meat, this move strengthens our lead in Europe and highlights our commitment to a forward-thinking, science-driven bioeconomy. I look forward to seeing how this hub drives breakthroughs in sustainable food production.
King’s College AI breakthrough
The transformative potential of AI in healthcare continues to unfold, with new research from King’s College London demonstrating how AI could support sonographers in detecting abnormalities in unborn babies more quickly and accurately. This innovation has the potential to enhance early diagnosis, improve patient outcomes, and alleviate pressure on the NHS workforce by providing critical decision-support tools.
Isomorphic AI funding
Congratulations to BIA member Isomorphic Labs, who announced today $600 million in funding to further develop its next-generation AI drug design engine and advance therapeutic programs into the clinic. The financing round is led by Joshua Kushner’s Thrive Capital, with participation from GV and follow-on capital from existing investor Alphabet.
Spring up North
It was a privilege to attend and speak at the NICE conference in Manchester, celebrating 25 years of independence and integrity. It was good to be able to present the industry’s perspective of the impact of NICE’s work – and give a realistic account of where we are in the UK in terms of access to medicines. Namely, that Research by the King’s Fund shows the UK in a relegation position (16th and 18th, respectively in a basket of 19 comparable countries), for preventable and treatable causes of mortality. The relative underinvestment in medicines is contributing to poor health outcomes.
Whilst at the conference it was a treat to attend the launch of the Citylabs 4.0 building on the Manchester Royal Infirmary campus. It’s great to see new lab space springing up across the UK because other buildings are full, and how the Wilton Centre in Teeside is making use of new freeport initiatives for life sciences.
Further, this Friday, BIA is hosting a round table with Chi Onwurah (MP for Newcastle upon Tyne Central and West and chair of Science, Innovation and Technology Committee) and Newcastle life science companies. With the two major universities of the region present, the conversations will be focused around what is done well in the region, challenges faced and policy implementations on both a regional and national scale.
mRNA wobbles in the USA?
I’ve been reflecting on US-based media reporting that has suggested that the new federal administration is running an implicit anti-mRNA strategy, both in science funding grants and in contracts for vaccines impacting pandemic readiness. Yet at the same time, I see that this week, the federal regulator has granted a fast-track designation for a preclinical-stage mRNA-based vaccine candidate and for a US biotech’s clearance for early stage trials.
Showing the interconnectedness of our global innovation ecosystem, this permission to work is based on excellent and speedy clinical trial work from the UK. Verve has been running its Phase 1b trial of VERVE-102, called Heart-2 for a few months. The first patient was enrolled within 40 days of this trial receiving regulatory and ethical approval in London, which is a significant achievement for this type of study.
The mRNA Revolution: delivering a new generation of medicine continues and it's great to see the impact it is having for bowel cancer patients in Manchester too.
New Innovate UK boss
The new boss at Innovate UK is Tom Adeyoola. He brings a wealth of experience spanning technology, investment, entrepreneurship, and digital transformation to the role. As co-founder of Extend Ventures, he has worked with Innovate UK to improve diversity in grant funding and support underrepresented entrepreneurs. We welcome him to this key role for our sector. I look forward to meeting him soon and working closely with him in the months and years ahead.
