A closer look at the Life Sciences sector

We caught up with Gary Kidd to talk about innovation in the industry, how businesses are growing, and what support is available along the way.

What is one thing people are often surprised to learn about Life Sciences businesses?

I think many people are surprised by the depth of talent in the sector. Teams work together to develop creative, out of the box ideas that aim to improve or create new medical and healthcare treatments.

The UK is rich in expertise and has strong regulations around drug development. This is recognised worldwide and attracts significant investment.

I have worked within the sector for over 15 years and have seen how the right funding and support can help small ideas, often starting in universities or early stage businesses, grow into commercial products used in healthcare systems around the world.

What is the most exciting development you are seeing in Life Sciences right now?

The sector faced challenges after the pandemic, and more recently, geopolitical factors have affected the UK’s reputation as a global Life Sciences leader. However, things are changing quickly.

The UK has rejoined EU-led research and development programmes, and large pharmaceutical companies, often referred to as Big Pharma, are confirming plans to grow here rather than scale back.

According to UK government and industry reports, investment in the Life Sciences sector is expected to increase as confidence returns and global firms expand their presence in the UK.

While this activity is often seen at a sector level, it will also support individual research and development businesses across the UK, particularly those linked to universities and centres of excellence.

This renewed confidence is also bringing private investors back into the market, encouraged by the strong returns that can come from successful research. In turn, this helps unlock further support from local and national government, as Life Sciences is recognised as a key growth sector in the UK and Ireland.

What questions do you wish more businesses would ask you when they are exploring finance options?

Many Life Sciences businesses are aware of the challenges of securing finance, especially when profitability is low or non-existent in the early stages. Because of this, some assume there are no commercial funding options available to them.

At Close Brothers, we’ve developed a range of solutions that can support businesses much earlier than they might expect. So, the key message is simple. Start the conversation. We will always aim to provide the best guidance possible and work with you based on a strong understanding of how the sector operates.

What is the most rewarding part of supporting clients in this sector?

No two businesses in the Life Sciences sector are the same. They differ in areas such as staffing, investor support, and the products or processes they are developing. This means every opportunity is unique. Even after many years in the sector, I am still learning with every client.

It is especially rewarding to see businesses grow and succeed, knowing that Close Brothers has played a part in supporting their journey alongside other key partners.

Have you seen demand for certain types of equipment finance grow in the last year?

We fund a wide range of laboratory equipment, so we see demand across many areas. However, one of the most common needs is for molecule analysis equipment.

This type of equipment can cost between £100,000 and £1 million, which is a significant investment, especially for businesses that are not yet generating revenue. Financing this equipment allows businesses to protect their cash flow and maintain liquidity, which is often critical in the early stages of growth.

The availability of lending, products and services are subject to eligibility, status and our lending criteria. The right to decline any application is reserved, terms and conditions apply.