- Sector value on London Stock Exchange nears £400 billion market cap, £40 billion ahead of 2015, with US healthcare and life science companies continuing to see London as natural home
- £1.96 billion raised in life science IPOs and further offerings in 2016
- Over three years the FTSE Healthcare AIM and FTSE Healthcare All Share Indexes have outperformed wider indexes to end 2016 +48% and +16% respectively, compared to +7% for the FTSE All Share Index
- UK at the forefront of life science innovation, fundraising and investment
London Stock Exchange hosts its third Future of Healthcare Investor Forum today as the UK life science sector continues its growth trajectory, with UK listed life science companies nearing a combined market capitalisation of £400 billion, up £40 billion since the end of 2015.
To mark the occasion, Lord Prior of Brampton, Parliamentary Under Secretary of State, Department for Business, Energy and Industrial Strategy opened London Stock Exchange trading alongside Xavier Rolet, CEO, LSEG and Sarah Haywood, CEO, MedCity. They were joined by conference sponsors, Consilium Strategic Communications, J.P. Morgan, Manches, Numis, Penningtons, PwC and partners BioIndustry Association (BIA) and One Nucleus.
Life science & healthcare key UK stats:
- £1.96 billion was raised in life science IPOs and further offerings on London Stock Exchange in 2016, bringing the total since 2014 close to £6 billion – an historic three-year peak in life science funding in the UK
- In October 2016, ConvaTec, the global medical products and technologies company, raised £1.59 billion in London, capitalising the business at £4.39 billion. ConvaTec was the largest European healthcare IPO for more than 20 years and is among the top ten largest global healthcare IPOs of all time
- The float of MaxCyte, a developer and supplier of cell engineering products, on AIM in March 2016, highlighted the continued appetite for US-based life sciences companies to list in London, building on listings from Verseon and MotifBio in 2015
- Over 115 life science companies are currently listed on London Stock Exchange, with a combined market capitalisation nearing £400 billion, up £40 billion since the end of 2015
- Data from MedCity highlights angel and seed investment sums in the UK life science sector in London and the South East up 258% and 365% respectively compared to 2015
The UK-listed healthcare sector continues to be a source of outperformance for investors:
- Over three years the FTSE Healthcare AIM and FTSE Healthcare All Share Indexes have outperformed the FTSE All Share Index to end 2016 +48% and +16% respectively, compared to +7% for the FTSE All Share Index
- UK 2016 average Healthcare IPO performance +9.24%
- The FTSE AIM Healthcare Index ended 2016 +3.6% versus -20.6% for the NASDAQ Biotechnology index
Xavier Rolet, CEO, London Stock Exchange Group:
“The UK is undergoing a life sciences revolution. We have seen strong momentum over the last three years with both private and public capital raising in this sector. Together with the support of the UK Government, the life science industry and investors, London Stock Exchange Group is creating a unique ecosystem to support life science innovation, fundraising and investment in the UK. Bringing breakthrough science and innovative technology to the market is critical for the creation of new high-quality jobs, economic growth and long term public health.”
Parliamentary Under Secretary of State, Lord Prior said:
“The UK is a world leader in life sciences, and I was delighted to visit and open trading on London Stock Exchange to celebrate its ongoing success. Life science will form a key part of our Industrial Strategy, driving growth right across the country and ensuring we continue to make the UK the most attractive country to invest in this vital sector.”
Sarah Haywood, CEO, MedCity:
“It’s clear that the UK remains an open and attractive place to invest. With over 115 companies listed on the London Stock Exchange, we continue to have a strong, sustainable hub for life sciences.
“The UK, and in particular the world-leading life sciences cluster of Cambridge, London and Oxford, is home to innovative companies that share a determination to move science out of the lab and to the patient as quickly as possible. This presents investors with an opportunity, not only to make money, but to play a part in developing therapies and technologies that will make a real difference to people’s lives.”
Steve Bates, CEO, UK BioIndustry Association (BIA):
“It’s fantastic to be back at the London Stock Exchange for a third year, showcasing the vibrant portfolio of life science companies which exist across the UK. Our country is home to over 5,600 life science companies, at various stages of maturity and working across a multitude of areas. These talented companies offer a diverse range of investment opportunities, and with new funds such as the recent £1bn Syncona and BACIT combination, we see a greater opportunity for generalist investors to come in alongside specialist funds.”
James Mitford, Managing Director, UK Investment Banking in EMEA, J.P. Morgan:
“The UK remains an attractive and resilient destination for a broad range of life sciences companies. We are seeing growing interest among the investor community globally in the sector as the UK continues to strengthen clinical development infrastructure and is recognised for scientific excellence and innovation.”
About London Stock Exchange Group
London Stock Exchange Group (LSE.L) is an international markets infrastructure business. Its diversified global business focuses on capital formation, intellectual property and risk and balance sheet management. LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. The Group can trace its history back to 1698.
The Group operates a broad range of international equity, ETF, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (Europe’s leading fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants, including retail investors, institutions and SMEs unrivalled access to Europe’s capital markets. The Group also plays a vital economic and social role, enabling companies to access funds for growth and development.
Through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with approximately $10 trillion benchmarked to its indexes. The Group also provides customers with an extensive range of data services, research and analytics through Mergent, SEDOL, UnaVista, XTF and RNS.
Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of LCH, a multi-asset global CCP operator, LSEG owns CC&G, the Italian clearing house; Monte Titoli, a leading European custody and settlement business; and globeSettle, the Group’s CSD based in Luxembourg.
LSEG is a leading developer and operator of high performance technology solutions, including trading, market surveillance and post trade systems for over 40 organisations and exchanges, including the Group’s own markets. Additional services include network connectivity, hosting and quality assurance testing. MillenniumIT, GATElab and Exactpro are among the Group’s technology companies.
Headquartered in the United Kingdom, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 3,500 people.
Further information on London Stock Exchange Group can be found at www.lseg.com