Are we thinking we are back?
However, the One Nucleus Genesis conference in December saw data presented by David Stubbs, Head of European Healthcare at investment bank Raymond James demonstrate the reasons for optimism reminiscent of the film John Wick where the lead character answered the question of whether he was back with ‘… yeah, I’m thinking I am back.
What leads to that sense of optimism is that 2024 saw 18 IPOs raising $3.8 billion, the third best year ever. Moreover, M & A activity achieved record levels in 2024 with over ten deals breaking the $750 million threshold.
The positive news has kept flowing into 2025, with a slew of major announcements ahead of the JP Morgan Healthcare Conference earlier this month.
The global life science financing and dealmaking landscape does genuinely appear to be turning a corner and with this region’s companies always having been attractive to global investors when cash is flowing, there is certainly reason to be upbeat.
Considering the Greater Cambridge cluster within that backdrop and local giants, AstraZeneca and GSK, have played their part in stimulating the upturn.
AstraZeneca had a very active year with significant transactions in M & A with deals including Amolyt Pharma and Fusion Pharmaceuticals valued at up to $1.05bn and $2.4bn, respectively. In addition, there was the licensing deal with Hong Kong-listed CSPC Pharmaceutical Group with a headline reported value of $1.92bn.
GSK were partners with one of the most exciting partnering deals of the year in the shape of their $7.2bn collaboration with investors Flagship Pioneering to bring the GSK development expertise to the >40 Flagship portfolio companies.
Further back in the pipeline, we have already seen significant venture rounds secured by local heroes such as bit.bio raising $30m and Owlstone Medical $27m recently whilst emerging stars such as LinkGevity, ExpresionEdits and Loqus23 creating excitement for the future.
Adding in successes in progress such as Bicycle Therapeutics seeing its clinical programmes progress, Vianautis securing a high value multi-year collaboration with Eli Lilly and Outsee Ltd’s collaboration in dementia with the Finnish Biobank Cooperative, then 2025 could be a very good year for our cluster.
Downturns in financing cycles do not come without pain, however, and it has not gone unnoticed that a number of the region’s biotechs have had to streamline R & D operations whilst focussing on key value drivers. Whilst such reductions in headcount are never good news for those involved, one should remember that the experienced talent this can release into the cluster to grow and scale the next generation of companies can be significant.
The recycle rate in this region has always been high and the companies now being created and supported by the likes of Cambridge Innovation Capital, Parkwalk Advisors, Cambridge Enterprise, Accelerate@Babraham and others should be well placed to acquire the brilliant personnel they need for a steep trajectory to success.
Noticeably on the sources of venture investment globally, then the proportion of venture funding into life sciences in 2024 that originated in the US was much higher than previous years at 75 per cent.
There was a corresponding drop in the levels from China to just seven per cent and a reduction in Europe. This dominance of US venture funding, increasingly into the UK biotech sector also according to the BioIndustry Association/Clarivate data, reassures us at One Nucleus that launching the Boston Biotech Bootcamp, showcasing members during Biotech Week Boston and attracting the RESI (Redefining Early-Stage Investment) conference to Genesis to engage global investors was timely and the right thing to do for our sector.
These initiatives are being built upon for 2025 and we look forward to celebrating success at the forthcoming One Nucleus Annual Awards in March.
Closer to home the opportunity to showcase our members and the region at global partnering events such as BIO Europe and BIO International Convention we see as important support mechanisms.
The still evolving political landscape provides a degree of uncertainty, opportunities and challenges in almost equal measure.
Encouragingly, the regional enabling collectives such as One Nucleus, Innovate Cambridge, Cambridge Ahead, Cambridge& and the adjoining sector groups such as Cambridge Cleantech, Cambridge Network and Agri-TechE feel more aligned and joined up than ever. Working together to formulate responses and solutions to Government calls for ideas to meet their lofty aspirations for growth.
A collective voice is compelling, especially when taken back to Government by supportive political voices in the region including Daniel Zeichner MP, Minister of State at the Department for Environment, Food and Rural Affairs, George Freeman MP, long-term life science champion and MP for Mid-Norfolk and Pippa Heylings MP, Deputy-Chair of the All Party Parliamentary Groups for Life Sciences and MP for South Cambridgeshire.
In conclusion, it seems appropriate to feel optimistic about the year ahead for life sciences in the region with a recovering global investment landscape, the depth of talent located here for innovation and translational research, a collective stakeholder voice taken back by supportive Parliamentarians, real estate developers building the capacity for growth and our Big Pharma behemoths driving the dealmaking trends.
