Studies funded by the UK’s Medical Research Council (MRC) have led to spin-out companies valued at more than £6 billion collectively in the past 15 years, with every £1 in translational research support yielding at least £5 in equity investment, new analysis shows.
In a study of the economic benefits of publicly funded medical research, consultants from Ipsos UK examined financial data for 341 pharmaceutical and biotechnology start-ups linked to MRC funding which had been founded between 2008 and 2023.
Of these firms, some 237 remained active in 2024, of which 206 had readily accessible valuation and equity investment information, which showed these firms were collectively valued at £6.1 billion, having attracted £5.7 billion in investment overall, says the report published on 29 January.
Some 22 firms attracted more than £50 million in investment each, with UCL drug spin-outs Autolus and Orchard Therapeutics raising £738 million and £640 million respectively by the end of 2023, while Bicycle Therapies – a spin-out from Cambridge’s MRC Laboratory of Molecular Biology – has attracted £372 million in private investment.
The study also identified a sample of 82 MRC-linked spin-outs founded before 2008 which were responsible for more than £4.5 billion in equity investment.
Among those earlier success stories are Cambridge Antibody Technology, whose research led to some of the best-selling drugs over the past two decades and £214 billion in global sales.
That company was bought by Cambridge-headquartered AstraZeneca for £945 million and merged with US drug firm Medimmune to form its biologics arm in 2007, though revenues still accrue to its UK operations.
According to the report, spin-outs arising from MRC’s translationally targeted research funding leveraged £5.30 of external investment from every £1 invested. Overall, about £3.1 billion of external equity investment between 2008 and 2023 could be linked to £577 million in research funding, though other research councils and private investors also committed funds in this period.
The report comes just over a year after the UK government accepted the recommendations of the spin-out review led by University of Oxford vice-chancellor Irene Tracey – which has since seen the new Labour administration announce an additional £40 million over five years to support university spin-out activities.
Patrick Chinnery, executive chair of the MRC, said the report highlighted how “MRC-funded research has led to the creation of a significant number of impactful spin-out companies”.
“Our funding has given rise to innovative medical treatments and technologies that underpin valuable intellectual property and new companies, collectively worth billions of pounds, targeted on improving the lives of people with diseases,” he said.
The “MRC’s ongoing strategic support for translational research is proving highly successful”, insisted Chinnery, who explained this type of research funding stream was responsible for “progressing research from bench to bedside, from discovery to prosperity – supporting a healthier economy, as well as a healthier population”.
