A non-disclosed U.S based life sciences fund is set to invest up to almost $1 billion in the UK biotech sector, according to the financial times. The fund will start allocating its funds while adjusting a big portion of its operations from the United States to the United Kingdom. There are more details that will be disclosed at a later time when the U.K government and drug makers announce the “sector deal” that will define the future of the industry post-Brexit.
The Financial Times were the first to catch wind of the news, stating “one international investor is likely to migrate its assets to the U.K.”
According to the financial paper, the fund “is planning to invest up to $1 billion to create a large biotech company in the U.K.” That suggests it is preparing for a big wage on one biotech—Immunocore is a potential candidate—rather than going with a broad investment strategy that would positively affect the whole sector.
The details to follow will disclose how big of a deal this is for the U.K. Shifting a big U.S. life science fund to move its center out of the country and invest big money into British biotech companies would be a major achievement for the United Kingdom. This fund would continue to fuel the U.K’s ambition to build four £20 billion biotech companies over the next decade, by participating directly into large fundraising rounds and by attracting other biotech investors.
There are a number of potential leakers that had possession of the information which provides a reason to pump up the importance of the investment and relocation to, and possibly even more. News of the sector deal comes at a time when the failure to reach an agreement over the Irish border post-Brexit risks pausing, or at worst eliminating, negotiations with the European Union.
The possibility of Britain crashing out of the EU without a deal is making businesses concerned. The chance to take off big investments by major companies makes the sector deal an opportunity to redefine the image of business in post-Brexit Britain.