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Evaluate and BIA’s UK Biotech: A 10 Year Horizon – 2014 and 2015 Setting New Records in UK Biotech Financing via Capital Markets and Venture Capital
UK biotech has raised $2.4 billion and presents better longer term financing compared to the US, better seed financing required to retain innovation
LONDON, BOSTON, TOKYO (July 09, 2015) — According to a new report from life science market intelligence firm, Evaluate Ltd and the UK BioIndustry Association (BIA) , over the past 10 years, the UK’s biotech sector has outperformed other European countries, raising an impressive £923.7 million via IPOs and $2.4 billion in venture capital. The rise in optimism has been most evident in 2014 with the momentum continuing into 2015.
2014 was a big turning point for the UK biotech sector. In this year alone, on the public market, nine companies listed, raising a total of £408 million, almost half of the total IPO haul for the past decade.
UK venture capital financing also improved in 2014, jumping 71% from the previous year to $430m, with VC firms doing fewer, bigger rounds at an earlier stage. On the flip side, seed funding of early stage companies by venture capital has fallen dramatically and highlights the need for alternative funding and the return of specialist investors willing to take a more long-term view of the industry.
UK Biotech: A 10 Year Horizon highlights:
- Strong confidence in UK market is reflected in recent IPO activity reaching £408 million in 2014, with a further two IPOs in 2015
- Good stock market performance of new entrants, including 247% share gain by 4D Pharma since its IPO, helping to highlight the benefits of investing in the sector
- Increase in exits (via IPO and trade sales) have created a 10 year record in venture funding: investment in 2014 is up 71% to $430 million (2013: $251 million)
- Fewer larger financing deals took place in 2014, indicating a change in investment style
- Venture capital seed funding declined dramatically to 1 in 2014; although the $20 million raised equalled almost the total of the last four years combined
- UK is holding its own against the US and outperforming Europe in the past five years for venture funding
“The uplift of investment into the UK is fantastic news for the life sciences market, and 2014 in particularly, was an extraordinary year,” said Lisa Urquhart, report author and Editor of EP Vantage, the editorial arm of Evaluate. “However, these recent gains have been hard won. As we enter the second half of 2015, it will be interesting to see if any indicators of the future direction of the UK sector can be spotted. What is obvious, is that if we are to maintain this momentum, we need to see a big jump in seed funding - crucial to grow and retain UK innovation.”
Steve Bates, CEO of the BIA, said: “It is clear that the UK biotech funding ecosystem has learnt lessons from its history and is doing things differently this time around. We are seeing the development of different forms of investment for innovative UK companies. In contrast to the more generalist US investors, the UK’s specialist investors understand the need for patience, restocking funds while capital is plentiful, giving well-backed UK companies more financial runway to succeed.”
The full version of the UK Biotech: A 10 Year Horizon report, based on market intelligence from EvaluatePharma®, can be downloaded at www.evaluategroup.com/UKBiotech.
About Evaluate Ltd.
Evaluate is the trusted source for life science market intelligence and analysis with exclusive consensus forecasts to 2020. We support life science and healthcare companies, financial institutions, consultancies and service providers in their strategic decision-making. Our services include EvaluatePharma, EvaluateClinical Trials and EvaluateMedTech. Our global team of dedicated healthcare analysts employs rigorous methodologies to deliver strategic commercial analysis. We make our services valuable by combining superior quality content, user-friendly reporting tools and outstanding customer service to solve client problems.
For more information visit: www.evaluategroup.com. On Twitter: @evaluatepharma, @evaluatemedtech, @epclinicaltrial, @epvantage, @evaluateJP.
About the BioIndustry Association
Established over 25 years ago at the infancy of biotechnology, the BioIndustry Association (BIA) is the trade association for innovative enterprises involved in UK bioscience. Members include emerging and more established bioscience companies; pharmaceutical companies; academic, research and philanthropic organisations; and service providers to the bioscience sector. The BIA represents the interests of its members to a broad section of stakeholders, from government and regulators to patient groups and the media. Our goal is to secure the UK’s position as a global hub and as the best location for innovative research and commercialisation, enabling our world-leading research base to deliver healthcare solutions that can truly make a difference to people’s lives.
For more information visit: www.bioindustry.org.
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