Labiotech.eu

London is one of the U.K.’s major biotech hubs and is considered to be part of the "Golden Triangle" – essentially a cluster of biotech excellence – alongside Oxford and Cambridge. The capital city is a leading location for biotech activity, attracting significant investment and housing numerous companies and research institutions. “Though Cambridge is often seen as the U.K.’s biotech capital, and Oxford has seen growth in the last five years through focused investment in world-leading research, e.g. the [COVID-19] vaccine, London benefits from housing the headquarters of many VC [venture capital] firms, banks, and global pharma companies, and attracts venture capital in the areas of AI [artificial intelligence] and biotech startups, especially,” explained Adrienne Rivlin, partner in L.E.K. Consulting’s healthcare practice. In fact, it is precisely because of these attributes that the ‘Global Cities Comparison Report’, launched by MedCity ahead of London Life Sciences Week in November 2024, ranked London as the number one city in Europe, and third globally, for life sciences. In the same report, it actually achieved the highest global ranking for its health research environment, standing out for its high concentration of clinics, rapid recruitment of participants in early-stage clinical trials, and supportive regulatory system. In this article, we take a closer look at what makes London such a big player in the world of biotech. London: A thriving life sciences and biotech ecosystem with world-class infrastructure As an integral part of the U.K.’s life sciences sector, London benefits from a diverse talent pool and its links to world-class research hubs, including bioscience research centers at notable universities. Some of the most notable institutions include London South Bank, Imperial College London, University College London (UCL), Queen Mary University, The Francis Crick Institute (Europe’s largest biomedical research centre), and LifeArc (a not-for-profit medical research organisation). While Oxford and Cambridge are perhaps the most well-known cities in the U.K. for having a long history of academic excellence, Rivlin argued that London has always been part of the world-leading life sciences cluster: “I’d argue that London has always been part of the Golden Triangle, with this rich network of research centers, healthcare organisations and medical charities, and home to four of the 10 best universities in the world for healthcare, including UCL and Imperial College London. With the Wellcome Trust and the national Cell Therapy Catapult also based there, it’s well deserving of its place in the coveted circle.” To potentially add even further to the capital’s world-class reputation, plans were recently submitted by Aviva Capital Partners (ACP) and mixed-use developer Socius for the development of a £1 billion ($1.35 billion) major cancer research and treatment center based in the South London borough of Sutton. The site will be adjacent to The Royal Marsden NHS Foundation Trust’s Sutton site and aims to establish an ecosystem where academic research, clinical treatment, and commercial innovation can coexist and work together. With around one million square feet of research and laboratory space, the project is expected to create 3,000 new jobs, most of which will be in research and development (R&D) and small-scale life sciences manufacturing. The hub is also expected to include spaces for big pharma and life sciences companies, as well as smaller, flexible labs and incubator spaces for startups, offering them access to equipment and facilities that would otherwise require significant capital investment. The planning application for the London Cancer Hub has already been submitted to the London Borough of Sutton, with a decision expected to be made later this year. If all goes well, it will certainly add enormous value to London’s already notorious life sciences ecosystem. An attractive biotech ecosystem for foreign companies Naturally, with such impeccable research institutions, London has been extremely successful in attracting foreign companies to the city, bringing in significant investment. Rivlin noted that London also has an impressive clinical and regulatory infrastructure, which is another attractive prospect for foreign companies, as well as the proximity to the National Health Service (NHS) and renowned academic partners. “Access to an impressive talent pool from local universities, made up of top medical and science students from around the world, also means companies looking to expand and recruit new talent can benefit from being on the ground in London,” she added. As well as having U.K.-based pharma giants like GSK, which recently relocated from its previous headquarters in Brentford to a new central London location in New Oxford Street, there are a number of foreign pharma companies that have chosen to base themselves in London. Some notable examples include Pfizer, which has built partnerships with NHS bodies and Biobank groups, using London as a strong strategic base for its business, and Gilead, which also has a headquarters in central London. Additionally, German multinational BioNTech announced earlier this month that it is planning to invest up to £1 billion ($1.35 billion) over the next 10 years in the U.K. to broaden its research and development activities for innovative medicines. The investment is part of BioNTech’s plan to increase its presence in the U.K., which will see the creation of two new R&D hubs, one of which will be based in Cambridge, and the other will be an AI hub based in BioNTech’s planned U.K. headquarters in London. Said to be one of the “biggest investments in the history of U.K. life sciences,” the investment is being backed by the U.K. Government with £129 million ($173.81 million) of grant funding over the 10 year period. Rivlin said that this investment is a testament to both Cambridge and London as “key hubs for biopharma progress and innovation.” Plus, she noted that GSK’s $300 million London investment in biotech machine learning company Relation Therapeutics towards the end of last year also demonstrates confidence in the capital. UK biotech funding defies the odds, with London-based companies leading the way The U.K. as a whole has defied the odds when it comes to biotech fundraising in recent times. Last year, it raised around £3.5 billion ($4.36 million) – an incredible 94% increase from 2023 – despite the difficult global economic climate. Biopharma companies based in the U.K. also saw a surge in venture financing for innovator drugs in 2024, with double the total deal value from 2022: $827 million in 2022 compared to $1.7 billion in 2024. This surge is expected to continue, with the total deal value in the first quarter of 2025 already reaching a total of $1.1 billion – a two-fold increase from $542 million raised in the fourth quarter of 2024. And it seems that it is London-based companies in particular that are leading the way in biotech fundraising, as the money raised in the first quarter of 2025 involving innovator drugs was largely driven by AI drug discovery company Isomorphic Labs, which raised $600 million in March, and obesity company Verdiva Bio, which raised $411 million in January. Furthermore, according to Rivlin, the development of new science and innovation districts, including Kings Cross St. Pancras and London’s BioScience Innovation Centre, has supported the U.K.’s growth in investment, with companies like Google DeepMind and BenevolentAI in particular making strides in AI drug discovery in London’s King’s Cross area. “Policy support for life sciences, particularly in the wake of Covid-19 and Brexit, has further bolstered this progress, with The Life Sciences Vision setting out a dedicated 10-year plan to maintain the U.K.’s global leadership in life sciences, across areas including vaccine discovery and life sciences SMEs [small and medium-sized enterprises],” she added. A bright future for London’s biotech scene According to Rivlin, London is extremely well-positioned for growth. This is thanks not just to all the reasons mentioned in this article, but also to its access to a large, diverse patient population that helps with clinical trials and ensuring they are representative. She also added that, despite Brexit, London continues to be a recognized entry point for broader European markets, and a first step for many looking to expand in this part of the world. Additionally, earlier this month, the Department for Science, Innovation and Technology (DSIT) announced new 10-year budgets for R&D funding, which Rivlin said will provide certainty to research organizations that their work will continue over the long term. It should also help to attract more private investment and grow the U.K. economy even further, particularly in London, thanks to its position as the capital city. Indeed, the U.K. has been working extremely hard over the last couple of years to position itself as a global leader in biotech and life sciences. And it certainly seems to be achieving its goal, with London at the heart of its flourishing ecosystem.