Britain doubles down on the life-sciences industry

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The government vows to clear hurdles so the sector can flourish. Will it be enough? The government vows to clear hurdles so the sector can flourish. Will it be enough?

hope that success in one industry may beget success in another. Take Aberdeen, which grew rich from oil exploitation in the North Sea. By a decade ago, the Granite City laid claim to more multimillionaires per head of population than anywhere else in Britain. Now a local tycoon, Sir Ian Wood, hopes to foster growth in a different sector.

Already some 300,000 people are employed in the sector and the government talks of that number surging. To that end, Mr Sunak’s administration has set out several ways that Britain aims to make matters easier for life-sciences startups. Will Quince, a health minister, says the “ecosystem” in which small firms operate puts too many obstacles in the way of those eager to grow. Both politicians talk of sweeping them away.

Beyond the universities, a second series of hurdles block Britain’s startups. Here, again, the country enjoys distinct advantages, so should be able to prosper. Around a third of all life-sciences-focused startups in Europe are reckoned to be there, more than in any country on the continent. That’s in part because of abundant talent, an entrepreneurial culture and sufficient funding being available for early-stage growth.

The third problem of raising larger-scale capital is the biggest challenge. Whereas venture funds for startups remain plentiful, investment for those moving to later stages has long been too hard to obtain. Last year only 22 life-sciences companies in Britain raised £30m or more in funding rounds. In America nearly 400 did so. Worryingly, life-sciences firms collectively were able to raise only £3.3bn in equity finance last year, down from £7.2bn the year before.

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