UK biotechs suffered restricted financing in 2025

Core Insights - The UK biotech sector experienced a significant decline in equity financing and venture capital in 2025, raising concerns about its attractiveness on the global stage [1][2] Financing Trends - Equity financing for UK biotechs dropped by 49% to £1.9 billion ($2.59 billion) in 2025 from £3.7 billion ($5.05 billion) in 2024 [2][4] - Venture capital funding decreased by 13% in the same period, highlighting a broader trend of reduced biotech funding globally [2] IPO Activity - No UK biotechs went public in 2025, marking the third consecutive year without new listings, which is indicative of restricted growth and investor confidence in the sector [5] Industry Outlook - The geopolitical landscape is described as precarious, with a call for the UK Government to support the biotech sector and encourage domestic investment [6] - Positive developments were noted for 2026, including significant funding rounds for UK-based companies like Isomorphic Labs ($600 million) and Verdiva Bio ($410 million) [6] M&A Activity - A surge in M&A deal activity in Q4 2025 indicated a revitalized appetite for the SME ecosystem, exemplified by Amgen's agreement to acquire Dark Blue Therapeutics for $840 million [7]