January 25, 2018

Strength of UK Life Sciences confirmed at Future of Healthcare Investor Forum

  • 2.4 billion raised in life sciences IPOs and further offerings in 2017; +20% compared to 2016
  • London’s markets supporting life sciences companies throughout their growth journeys; over £2.1 billion raised in follow on capital, a six-fold increase compared with 2016
  • UK & international life sciences companies continue to see London as a long-term home; 120 companies currently listed in London
  • UK public markets are supporting innovation; two funding vehicles listed in 2017 to invest in healthcare & life sciences sector

London Stock Exchange Group hosts its fourth annual Future of Healthcare Investor Forum today to showcase the continued growth of the UK life sciences sector and its significance to the UK and wider global economy.  

To mark the occasion, Robert Barnes, Global Head of Primary Markets, London Stock Exchange Group, welcomed Robert Jenrick MP, Exchequer Secretary to the Treasury, to open the London market alongside Sarah Haywood, CEO, MedCity and Steve Bates, CEO, BioIndustry Association. They were joined by conference sponsors, Consilium Strategic Communications, J.P. Morgan, Manches, Numis, Penningtons, PwC, and partners BioIndustry Association (BIA) and One Nucleus.

Life sciences & healthcare key statistics:

  • Approximately £2.4 billion was raised in life sciences IPOs and further offerings on London Stock Exchange in 2017, +20% compared to 2016  
  • Funding was driven by UK listed life sciences companies returning to the market to raise follow on capital; over £2.1 billion was raised in follow on capital in 2017, a six-fold increase compared to 2016

The UK public markets continue to support innovation:

  • In March 2017, US-based fund BioPharma Credit became the first London listed fund to specialise in debt financing for the life sciences sector.
  • BioPharma Credit raised £611 million on the Specialist Fund Segment of the Main Market, highlighting the global investor interest in UK life sciences.
  • In February 2017 Arix Bioscience, a company focusing on generating value from health and life sciences, raised £113 million on the Main Market.
  • The float of Novacyt SA, a French diagnostics group, on AIM in November 2017, highlighted the continued appetite for international life sciences companies to list in London.
  • 120 life sciences companies are currently listed on London Stock Exchange, with a combined market capitalisation over £220 billion.

The UK-listed healthcare sector continues to be a source of outperformance for investors:

  • Over three years the FTSE AIM Healthcare index has continued to outperform wider indexes to end 2017 up 82%, compared to an increase of 50% for the FTSE AIM All Share index
  • In 2017 alone, the FTSE AIM Healthcare index increased by 39%, compared to 24% for the FTSE AIM All Share index

Nikhil Rathi, CEO, London Stock Exchange Plc:
“London Stock Exchange has supported UK and international life sciences companies in raising over £2 billion in follow on capital in 2017 alone. This is testament to the London market’s long-term attractiveness to a broad range of life sciences companies, giving them access to a deep, liquid pool of global growth capital.“We are proud to gather today UK Government, the life sciences industry and investors, to champion the UK’s unique ecosystem and support long term life science innovation, fundraising and investment in the UK and the rest of the world.”

Robert Jenrick MP, Exchequer Secretary to the Treasury:

“The UK leads the world in life sciences and has a rich history of spearheading life changing medical advancements including penicillin, IVF and the Electrocardiogram (ECG).“To remain at the forefront of this multi-billion pound industry, and create an economy fit for the future we must continue to invest in innovation. That’s why we have set out our strategy to support innovative companies, giving them access to more than £20 billion of investment to ensure that they can reach their full potential and compete on the world stage.”

Sarah Haywood, CEO, MedCity:

“The pace of scientific breakthroughs in UK life sciences, coupled with a fertile funding environment and supportive regulatory system, has helped fuel the continued growth of the sector in 2017. London has established itself as pioneers of healthcare and life sciences innovation, attracting both UK and global investment into the sector, which is critical for the UK’s economic and social wellbeing.”

Steve Bates, CEO, UK BioIndustry Association (BIA):

“Research launched by the BIA today reveals the UK’s impressive clinical pipeline, which indicates the strength and capability of UK biotech ecosystem to produce fantastic science that attracts funding and talent from across the globe. “There is money to be made as this pipeline develops and events like today are a great way to showcase what our sector has to offer to investors.”

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