Hot topic: A very late biotech spring?

Reports of a long-awaited ‘biotech spring’ have been sadly wide of the mark for a couple of years now. But as we roll into sultry August, could things actually be on the verge of blooming?

Over the last few months, excited despatches have been landing thick and fast about the Chinese biotech boom, with the Hang Seng Biotech Index up a chunky 62% in 2025 (to July 25th).

The European and North American biotech worlds have, understandably, been feeling a little miffed. Both the XBI (an index of North American biotechs) and the STOXX® Europe Total Market Biotechnology index are down slightly year-to-date.

Yet both are up strongly since the ‘Tariff Tantrum’ lows of early April, with North American biotechs up almost 25% since then and the Europeans’ up just shy of 20%.

And it might be reading tea leaves, but a couple of prominent listed UK biotechs have been doing particularly well lately too.

Oxford Nanopore has more than doubled in value since April, while Oxford Biomedica’s share price has risen by almost two-thirds.

There are specific reasons behind these exceptional increases. In Oxford Nanopore’s case, the gene sequencing company reported unexpectedly strong revenue figures for the first half of the year last week (July 21); most of the rally has taken place since then. Similarly, Oxford Biomedica reported “strong commercial momentum” during H1 2025, ahead of its annual general meeting in mid-June.

But positive news hasn’t always swung the pendulum in recent times, which begs the question: “Why is it doing so now?”

Private markets in Europe also appear to be stirring, most notably with the recent acquisition of UK-based vaccine developer Vicebio by Sanofi for up to $1.6 billion. And VCs seem a little more upbeat – although reluctant to publicly call the end of biotech’s winter, for fear of yet another cold front sweeping in. And who’d be surprised if that happened?

Clearly, it’s too early to tell. But perhaps there’s a little more hope out there at last – and that’s got to be a good thing.

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