How will the Trump administration affect the UK biotech industry?

Donald Trump’s return to the White House has brought with it some fast-paced changes to global politics and markets, and the biotech industry has not been left out from the speculation about the future. The UK’s BioIndustry Association (BIA) recently hosted a panel discussion between industry leaders about the potential impacts and opportunities that Trump’s return to power may present, as reported here: https://www.linkedin.com/pulse/trump-effect-what-does-mean-uk-biotech-bioindustry-ya3ie/.

It is reassuring to note that there is optimism for the state of the UK’s biotech funding, with the UK’s venture capital (VC) funding increasing significantly in recent years. This was considered to be a good sign of the resilience of the UK’s biotech industry in these changing times.  

The US market seems to be less clear to industry leaders, as it was commented that Trump’s administration appears on the face of its pro-business, but that the Nasdaq biotech index has been trending downwards since the US election. On the other hand, the panel was of the opinion that Trump’s administration could potentially be more biotech-friendly than Biden’s, with Trump’s policies and changes to regulation potentially fostering investment and opportunities.  On the other hand, a personal view is that excessive deregulation could be counterproductive, both in terms of public confidence and industry certainty. Further, the threatened cuts to government-funded research will certainly make the biotech sector as a whole less innovative.

Where there is change, there is risk, but also opportunity. The panel agreed that it is important for UK policymakers and biotech businesses to monitor changes in policy and regulation, and to respond to these, including proactively. There was also confidence that the UK’s strong biotech ecosystem leaves it well-positioned to make the most of the potential changes brought about by the new Trump era. A further personal opinion is that the UK may prove to be a welcome haven for investment and research in the event that the Trump administration’s “move fast and break things” approach proves too risky.