The Trump effect: what does it mean for UK biotech?
As Donald Trump returns to the White House, the biotech industry is assessing what his presidency means for investment and innovation. With the UK’s life sciences sector gaining strength, could this be the moment to turn uncertainty into opportunity? In this blog, Albert Maguire-King, Media and Communications Executive at the BIA, delves into insights from the BIA’s pre-Gala Dinner event, where industry leaders explored the impact of Trump’s presidency on UK biotech and the opportunities it presents.
The Trump effect: what does it mean for UK biotech?
As the world watches the political landscape shift once again with Donald Trump’s return to the White House, the UK biotech sector is assessing what this could mean for investment, growth, and global competitiveness. At the BioIndustry Association’s pre-Gala Dinner event, industry leaders gathered for a panel discussion on The Trump Effect: How Will NASDAQ’s Response Impact UK Biotech? The conversation provided valuable insights into the financial trends, policy outlook, and potential opportunities for the UK life sciences ecosystem in this new era.
Navigating the market response
Martin Turner, opening the discussion with findings from the BIA’s 2024 financing report, highlighted how the UK’s lead in venture capital (VC) funding within Europe has grown significantly in recent years—outpacing even Switzerland, a longstanding competitor in life sciences investment. This strong performance, despite economic headwinds, signals the resilience of the UK biotech sector and its growing appeal to international investors.
Sinclair Dunlop echoed this optimism, noting that while the macroeconomic environment remains challenging, the latest financing figures for UK biotech exceeded expectations. This resilience suggests that UK life sciences remain an attractive destination for capital, regardless of global political shifts.
However, the response from US markets has been more complex. Steve Usdin described investor sentiment as bifurcated—while some see potential in the pro-business stance of a Trump administration, the Nasdaq Biotech Index has been trending downward since his election. Usdin suggested that this decline may be driven more by market sentiment and reactionary headlines rather than substantive policy changes. He argued that, in reality, Trump’s policies could lead to a more permissive antitrust environment, fostering a climate that is more favorable to biotech mergers, acquisitions, and growth.
A more industry-friendly Administration?
Hilary Stis built on this point, suggesting that this administration has the potential to be significantly more biotech-friendly than the previous one. A lighter regulatory touch and policies that encourage investment in innovation could create new opportunities for biotech companies, both in the US and internationally. She also dismissed the notion that Trump’s return to office would trigger a mass exodus of biotech talent from the US to the UK, cautioning against overestimating the impact of political changes on global workforce mobility.
Opportunities for UK biotech
While Trump’s presidency introduces a degree of uncertainty, it may also present strategic opportunities for UK biotech. If a more lenient antitrust environment in the US fuels consolidation among biotech firms, this could drive increased investor interest in UK-based innovation. Additionally, if Trump’s administration prioritizes domestic investment in US biotech, UK policymakers may need to respond with measures that enhance the UK’s competitive edge—such as improved tax incentives, regulatory agility, and deeper public-private collaboration.
The panel discussion underscored an immutable truth: short-term market fluctuations are inevitable, but enduring success in biotech remains predicated upon three pillars—innovation, talent, and access to capital. Britain, with its robust life sciences ecosystem and formidable track record in scientific discovery, is well-positioned to capitalise on these shifting dynamics.
As the UK biotech sector navigates this evolving landscape, it has a unique opportunity to capitalize on global shifts and reinforce its position as a world leader in life sciences innovation. Rather than merely reacting to US policy changes, UK biotech must proactively engage with investors, policymakers, and global partners to secure competitive advantages in funding, regulation, and talent retention. The BIA will continue to advocate for policies that strengthen the UK’s life sciences ecosystem, ensuring that our industry remains a magnet for investment and a powerhouse of innovation. With the right strategy, the UK can turn this period of uncertainty into a catalyst for unprecedented growth, solidifying its role as a global biotech superpower.
