- The pharma and biotech sector has seen huge investments since the onset of the pandemic.
- UK received record levels of life science investment in 2021, with VC and PE biotech investment reaching around £3 billion by Q3 2021 and topping FY 2020 investment levels.
Pharma and biotech-focused companies have seen huge investments after the onset of the pandemic. The UK received record levels of investment into its life sciences sector in 2021, with VC (Venture Capital) and PE (Private Equity) investment into the biotech sector reaching around £3 billion by Q3 2021, thus crossing the amount raised in the entire year in 2020. Moreover, industry experts estimate that investment levels will remain high in 2022.
This sentiment is boosted by the expected listing and related changes by the FCA, in order to make the London Stock Exchange a more attractive listing destination for companies contemplating going public in the sector. The FCA reforms come following the review of LSE listing rules made by Lord Hill.
However, overall industry M&A and partnership deal activity was flat in 2021, but experts estimate this will see a jump in 2022, notably in strategic partnerships.
At a recent 2021 Pharmaceutical Industry Network Group (PING) conference, industry experts stated how the UK could remain a global leader in the life sciences sector by exploring opportunities in health and genomic data in drug discovery, opportunities in trade deals, identifying long term collaboration opportunities and more.
Let us look at 2 FTSE listed stocks in the pharmaceuticals sector and explore their investment possibilities:
- Sareum Holdings PLC (LON: SAR)
Sareum is a drug discovery company and is a part of the FTSE AIM All-Share index.
The group recently raised about £1.63 million through a subscription raising. The net proceeds from the raise are going to be used to help the group advance its proprietary TYK2/JAK1 programme known as SDC-1801 via a Phase 1a clinical development process.
Image source: Refinitiv
Sareum’s shares were trading flat at GBX 4.30 on 17 January at 11:26 AM BST, while the FTSE AIM All-Share index was at 1,165.13, up by 0.45 per cent.
The group’s market cap was at £171.91 million as of Monday. The group has given shareholder’s a return of 78.81 per cent as of date.
- Hemogenyx Pharmaceuticals PLC (LON: HEMO)
The main market-listed firm Hemogenyx is a biotech company. The group recently entered a partnership with a JSR life sciences company, Selexis SA, to help advance its CDX programme.
Under the deal, it aims to leverage the Selexis SUREtechnology Platform for the CDX programme.
Image source: Refinitiv
Hemogenyx’s shares were trading at GBX 1.83, up by 4.29 per cent on 17 January at 11:25 AM BST, while the pharma and biotech sectoral index were at 18,985.91, higher by 2.34 per cent.
The group’s market cap was at £17.15 million as of Monday, 17 January 2022.