The strength of life science start-ups cannot be overstated. The UK has been described as a world leader in the life sciences sector, with a reported annual turnover of £146.9 billion in 2023, increasing from £95.9bn in 2021. It leads Europe in Biotech infrastructure, world-class higher education and research capabilities, and continues to be at the forefront of scientific discovery on the world stage. The innovation and talent small to medium enterprises (SMEs) nurture is the lifeblood that Big Pharma needs to thrive, balancing the delicate ecosystem of this industry. And yet, times are tough for SMEs in the UK: over half of all new businesses fail within their first three years, and competition for investment continues to intensify.
The life sciences industry saw a boom during the COVID-19 pandemic, but in its wake remains lingering investor caution, increasing financial pressures and a dramatic decrease in scientific vacancies as science and research slips back out of the limelight. More recently, several pharmaceutical companies have cancelled or paused major expansion plans for their UK-based operations, owing to concerns that the UK is ‘losing the race for investment’, as warned by the Association of the British Pharmaceutical Industry (ABPI), with firms instead directing their expansion plans across the Atlantic. Richard Torbett, ABPI Chief Executive, has said that the UK’s world-class life sciences industry risks losing out without a ‘more competitive environment for investment’ that ‘rewards pharmaceutical innovation fairly’.
But the question remains, how can SMEs navigate these uncertain political and financial waters?
1. Learn to speak the language of investors and funders. Funding is more difficult to come by now, but finance is still out there. Do your commercialisation homework if you have a good idea or product and do not do yourself a disservice by failing to address these aspects in your funding application.
2. Build relationships with credible people in the industry. Recognise your strengths and limitations and be prepared to listen to and learn from people with credentials who you are working with to take your idea, product or service forward.
3. Remember who pays your bills. Customer service is not negotiable. In an industry where there are often alternatives and substitute suppliers, remember that people prefer to work with people whom they trust and can rely on.
4. Spread the word about what you’re doing. Once you have the necessary IP safeguards in place to protect your idea or product, tell people what you are about. This means that you are giving yourself the best chance to be able to monetise your idea or product later whilst still being able to tell your story now.
As an SME ourselves, Biophys understands some of the challenges faced by small companies when looking to expand their business. We understand that there is often more demand than available resources and that running a life sciences business involves much more than developing a product, service or idea that somebody else will be willing to pay for.
We can offer CXO support to manage the non-technical aspects of your business, leaving you to handle the technical aspects. We have a track record of managing SMEs on behalf of business owners, navigating IP strategy, working with regulators, managing data generation for compliance purposes, working with end users to hone products, and giving clients a voice to tell their story.
Our R&D microbiology and cell biology laboratory service also helps innovators to answer specific questions about their compound or idea, to prove a concept and to test out their product in the laboratory or whilst scaling.
Get in touch today to set up a meeting.