Another record investment into British Biotech

This is a record amount. In addition, looking at the period from the beginning of the year until end of August 2020 the total amount invested amount is £1.9 Billion, which means that this year is actually on track to becoming a record year for investment in the British Biotech sector. The full report can be found here

This is truly remarkable considering how 2020 year has developed with Covid pandemic and Brexit uncertainty. However, I do not think that it is so surprising, and there are a few reasons for that:

• First, the British Biotech sector is fundamentally very strong. The sector is supported by a strong educational sector which has worked for years with various in investors to develop inventions and bring those to market.
• Second, the legal system supporting the process in which investors can invest into private limited companies is very well developed in the UK and it is fairly easy to use for both the company and the investor.
• Third, the UK has over many years created an environment supporting tech and life sciences companies with for examples a generous R&D tax credit system which provides support to R&D intensive companies.

However, the Biotech Industry does face some serious challenges in the immediate future. Many aspects of Brexit are still unclear. This involves supply chains, the regulatory environment and how in practice companies can employ staff from EU. A Free Trade Agreement may solve some but not all of these aspects. However, such an agreement has not yet been agreed, and whilst talks are ongoing at the moment of writing, it is by no means certain that such agreement will be agreed. Therefore, to assist the industry the UK government must provide clarity around the implications of Brexit for the Biotech industry.