UK Biotech Attracts International Investment, According to New Analysis

A new report by Radnor Capital Partners and commissioned by the UK BioIndustry Association (BIA) has shown that international investors are being drawn toward the biotech sector of the United Kingdom.

According to the analysis, biotech shares on the London Stock Exchange have continued to outperform the wider market in the first half of 2021. Strong demand has been seen from North American investors and European investors for UK-quoted biotech’s, with UK larger institutions continuing to be material net sellers in value terms.

“These findings are further evidence that the UK is on the cusp of a golden age for biotech. Global investors, particularly from the US and Europe, can see the huge value in the sector and are flocking in,” said Martin Turner, head of Policy and Public Affairs at the BIA, in a July 13, 2021 press release. “There is a great opportunity here to capitalize on the UK’s position as an international hub for finance, combined with our world-leading biotech sector, to put the UK at the heart of a global industry that will dominate the 21st Century.”

“The capital raising element of our analysis is perhaps the most profound as 2020 saw a clear break from the previously established trend of declining fundraising activity,” added Iain Daly, director and co-founder at Radnor Capital Partners, in the press release. “The evidence from 2021 to date is that fundraising volumes are tracking below 2020 but well ahead of 2019. With a number of potentially material [initial product offerings] to come in [second half of the year], this picture is likely to remain positive.”

Source: BIA