2023 saw rapid advancements in technology and shifting market dynamics in the biotech industry that are likely to continue to take effect as we continue through 2024.  

While simultaneously being driven forward by persistent technological advances and breakthroughs, biotechs will likely face continued macroeconomic challenges that could affect growth and profitability across the sector. 

In this blog our Talent Executive Tyler Olding shares his thoughts on the outlook for the UK biotech industry and his predictions for the future of 2024.  

VC investment outperforms rest of Europe 

 It’s clear that wider global macroeconomic uncertainties have been affecting finance and investor interests in the biotech sector and are having a notable impact on new launches and contributions from public markets. But with global inflation easing, there is hope for a gradual recovery in the public markets in 2024 and an improved venture environment. 

 Despite the funding challenges of recent years, data from the latest BIA report reveals venture capital (VC) investment in UK life sciences and biotech continues to outperform the rest of Europe. £1.25 billion was raised in venture capital in 2023, only a 6% decrease year-on-year, against a backdrop of 43% reduction for all UK VC investment. 

Staff reductions in tough times 

 2023 was a tough year for the biopharma industry, with several companies downsizing and restructuring their workforces to try to stay afloat. While specific redundancy figures aren’t in the spotlight for UK biotechs, the recent funding crunch hints at a tough situation looming. Cost-saving measures, including potential job cuts, may be on the horizon.  

The biotech industry is particularly sensitive to the availability of funding, and downturns frequently prompt strategic reassessments. This can ultimately result in reductions in staff, as firms strive to prolong their financial runway during tough times. 

Unlocking CRISPR’s potential

A significant milestone reached in the early part of 2024 was the advancement of CRISPR as a therapeutic platform technology. Intellia Therapeutics was granted FDA clearance for a critical phase 3 trial of a new medication for treating hereditary ATTR amyloidosis hATTR.  

 Additionally, Vertex and CRISPR Therapeutics were authorised by the UK MHRA for the first CRISPR/Cas9 gene-edited therapy, CASGEVY™, for the treatment of sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT). CASGEVY™ is the only genetic therapy approved for SCD and TDT patients in the EU. With this approval, there are now more than 8,000 patients potentially eligible for treatment.  

These developments emphasise CRISPR’s potential as a flexible and influential tool in tackling various diseases. 

An AI-enabled future

AI is playing a crucial role in advancing multiple aspects of biotechnology, through elevating research, drug discovery, diagnostics, and personalised medicine, and the recent surge in biotechs that are deploying AI capabilities shows no sign of slowing down.  

Recent data from USM indicates that over half of healthcare organisations worldwide have plans to implement AI strategies and extensively incorporate the technology by 2025. In particular, global pharma, drug development, and biotech companies will invest more in discovering new drugs for chronic and oncology diseases. 

If you’re a biotech professional looking for a career change in 2024, but are worried about factors affecting the industry, please send me an email and I’d be happy to provide further guidance. 

Tyler