Industry resilience amid global challenges
Steve Bates OBE, Chief Executive of the BIA, commented:
In a tough global financing landscape, UK biotech raises from Draig Therapeutics and CellCentric demonstrate our sector’s continued ability to attract substantial investment. MSD’s £10 billion acquisition of Verona and Sanofi’s $1.15 billion acquisition of Vicebio show that global pharmaceutical companies continue to look to the UK’s innovative life science ecosystem to acquire future products.
Dr Martin Turner, Director of Policy and External Affairs at the BIA, added:
Much of the value created by UK life science companies being acquired this quarter hasn’t been realised by UK investors. However, we are observing a structural evolution in the funding environment, as the Mansion House agenda is being translated into practical funding vehicles for scaling companies. This creates new routes for UK investors, including pension savers, to benefit from innovative life science companies.
Key findings from the BIA report
- The UK accounted for 28% of all European biotech VC raised in Q2 2025, retaining its lead as Europe’s top biotech investment destination.
- Investor caution was reflected globally, with US biotech funding falling 24% quarter-on-quarter to £3.96 billion and European biotech funding down 40% to £1.23 billion.
The data underlines the UK’s ability to weather global financial headwinds while maintaining its position as a leading European destination for biotech investment. Structural changes in funding mechanisms, including greater institutional participation, may further strengthen the sector in the long term.
