Lacklustre routes to capital mean UK biotechs are struggling to grow as fast as international rivals, according to the British BioIndustry Association (BIA).
In an industry roundtable with representatives from British biotechs, access to finance was highlighted as the most urgent barrier to growth
As per a previous report from the BIA, British equity financing and venture capital dropped 49% and 13%, respectively, in 2025 compared to 2024. While the UK biotech sector is amongst the largest in Europe, a lack of large domestic investors and slow NHS adoption of innovation means the UK may not be able to capitalise on its competitive advantage. While there has been an uptick in equity raised by UK biotechs in Q1 2026, long-term uncertainty still remains.
According to the trade body, Association of the British Pharmaceutical Industry (ABPI), the UK is at risk of losing its world-leading life sciences status due to investment being captured elsewhere on the international stage. Via the BIA, the industry has called for several government initiatives: a £500m cash injection from the UK pension funds in 2028; a prioritisation of life sciences in the British Business Bank strategy and British Growth Partnership; and more involvement from ministers in securing investment from institutional investors. Maintaining and enhancing R&D tax reliefs – an incentive to reward UK companies for investing in innovation – was also underlined at the roundtable.