From Yahoo Finance: 2025-04-02 12:56:00

Ongoing political and economic turbulence in the US is affecting the biopharmaceutical sector, with IPOs expected to slow as investors assess risks. Policy changes under President Trump’s administration have created instability, but UK-based innovation may find new opportunities amid shifting regulatory dynamics, as discussed at the OBN BioTrinity conference.

In 2024, biopharma IPOs saw a resurgence, with 50 companies raising $8.52bn, the highest value since 2021. However, investors are facing renewed volatility in 2025 due to Trump’s tariff announcements and cuts to key health agencies, including the FDA, CDC, and NIH. Uncertainty is dampening investor confidence and delaying IPO activity.

Experts emphasize the need for companies to explore alternative funding strategies like M&A amid regulatory restructuring in the US. Interest rates and macro stability will impact biotech investment trends. Regulatory uncertainty in the US could open doors for the UK, with potential shifts in leadership at the FDA and MHRA creating opportunities for UK-based companies.

Challenges facing the FDA due to regulatory uncertainty present opportunities for UK innovators. The MHRA is seen as a more attractive regulatory partner, with potential disruptions at the FDA prompting UK companies to explore new pathways for growth and innovation. US uncertainty weighs on IPO market while UK innovation could benefit from regulatory shifts.

Read more: US uncertainty weighs on IPO market while UK innovation could benefit