After a protracted slowdown in the post pandemic period, the life sciences sector is finally springing back to life. July was the record month this year so far and the signs are positive looking forward. In terms of what had caused the lull, it is worth factoring that with the UK leaving the EU this had meant that the MHRA had to take over regulatory approvals for new trials, and this process has taken time to bed in. This coinciding with the pandemic, when any drugs pertaining to COVID-19 were given priority, and as a result of these factors a significant backlog developed. Along with that, the implementation of quantitative tightening has led to investment slowing down from VC and Private Equity firms, which has meant that Biotech firms, which are incredibly cash hungry, have struggled to secure funding.

Looking ahead, the two UK giants, Astrazeneca and GSK are both seeing strong share price growth in terms of this year so far, which bodes well for the sector at large, and Biotechnology is also starting to have a pick up in funding not just in the UK, but globally. With that, VCs are in fact raising new funds specifically for Biotechnology, including Flagship Pioneering ($3.6 billion in July) and Foresite Capital ($900 June 2024.) Arch Venture Partners are also set to raise a fund. Assuming VC fundraising continues at this rate for the rest of the year, 2024 would see $20 billion in new biotech-focused funds, according to investment bank Stifel, which is significantly more than any year before this decade.

And the UK is now starting to get the attention of financiers, as GBP strengthens. For financiers, buying into British companies, which are valued in sterling, at a time when GBP is set to appreciate by up to 10% against the US Dollar as the Federal reserve cuts interest rates whilst the UK holds firm, is becoming increasingly attractive. That combined with the unique tax breaks continuing to be offered by the UK to attract VC/PE funding means the sector is picking up pace again, which can only be good news for the job market.