View from the Bridge
Researching the Researchers: Investing in Biotech
The word ‘biotech’ can easily deter investors. It conjures memories of half-understood science classes, endless clinical trials, and indecipherable formulae. But this clouds the reality that biotech is a market sector in many ways much like any other, a theme we explore throughout our new sector report on biotech.
This year the sector is well-placed to take advantage of recent rule changes announced as a result of the Government’s Patient Capital Review. The increase in tax-advantaged fundraising limits for knowledge-intensive companies will benefit almost all early-stage biotech companies. It is also possible that the curtailing of tax-advantaged products offering ‘capital preservation’ and the resultant shift up the risk spectrum may increase the focus on higher-risk growth sectors such as biotech.
 Financing Growth in Innovative Firms: Consultation Response, HM Treasury, November 2017