Key points
Genomics activities can be broadly split into five key areas: Sampling; Sequencing; Analysis; Interpretation and Application. In 2021/22:
- There were 149 UK sites where genomics has been identified as a primary activity. The largest group of these relate to application activities, where genomic information is used to provide diagnostics or inform drug development (67 sites, 45% of sites).
- The total turnover from UK genomics sites was £3.6 billion. The share of turnover attributable to sequencing sites has grown significantly, rising from 50% of total turnover in 2008/09 to 88% in 2021/22.
In terms of investment:
- The UK’s genomics sector has received over £300 million in public grant and research funding.
- Between 2011 and 2021, the sector also raised £3.3 billion in equity funding – roughly 10% of the overall private funding in the UK life sciences sector. There is limited comparable data on the scale of activity and levels of investment in the genomics sector internationally.
Context – Overview of Genomics Activity
Genomics involves the study of genomes (the complete set of DNA within an individual) using a wide range of rapidly evolving technologies and techniques. 39 It forms part of the UK’s life sciences sector – a sector which was estimated to contribute nearly £13 billion to UK GDP in 2020. 40
Genomics activities can be categorised into five broad areas. These are highlighted below with associated revenue volumes.
Activity Definition UK turnover in 2021/22
| Activity | Definition | UK turnover in 2021/22 |
|---|---|---|
| Sampling* | The collection of a human DNA sample (i.e. blood or saliva) for laboratory analysis | - |
| Sequencing | Decodes the genome. Large scale sequencing is heavily reliant on high tech equipment. At £3.2bn sequencing accounts for the majority of industry turnover in the genomics sector. | £3.20 billion (88% of total industry turnover) |
| Analysis | After sequencing, data is generated in various forms; data which needs to be analysed and standardised via software and other methods. Comparison with phenotypic data (an individual’s observable traits, such as height and eye colour etc) can also help draw out information at the interpretation stage | £0.02 billion (<1% of industry turnover) |
| Interpretation | Turning the data and information received into previous stages into information for clinicians and pharmaceutical companies | £0.04 billion (1% of industry turnover) |
| Application | This is the final stage in the processing chain where genomic information is used to provide diagnostic treatment, targeted therapies or inform drug development. Other applications include direct to consumer genetic testing, such as ancestry research, pre disposition to disease or identifying skills such as recognising musical pitch. 41 | £0.40 billion (11% of industry turnover |
| Total | £3.6 billion** |
Source: Turnover data from UK Office for Life Sciences. 42 Figures may not sum due to rounding. *No turnover data was available for sampling activities. ** This figure relates to turnover for the UK’s genomics sector and is not directly comparable to the earlier figures referenced for the broader life-sciences sector.
The UK genomics sector is complex, and relies on the interaction of different public and private organisations to function effectively. Some examples of these in a health context include:
- Private genomics companies which provide diagnostic tools and therapies to the NHS, and receive data generated from patient interactions in return.
- Academic spin outs which have led to the creation of a number of genomics firms, which are often involved in research and development.
- Pharmaceutical firms regularly partner with genomics firms to speed up drug development.
- Government agencies and private investors are also involved and provide funding and support, to finance projects and provide firms with opportunities to scale. 43
There is also a wide range of applications beyond the health sector including: 44
- Agriculture - using plant genomes for increased crop yields, or other desirable traits (developing crops that are drought-resistant or require fewer pesticides);
- Environmental conservation - understanding the genetic makeup of endangered species can help inform conservation efforts;
- Climate change mitigation - genomic technologies are being applied to understand and engineer organisms that can capture carbon dioxide or produce biofuels; and
- Bio-based materials – producing sustainable alternatives to plastics and other materials.
Genomics activity in the UK
Business base
There are a range of estimates around the scale of genomics firm level activity in the UK. Genomics Nation estimate that in 2022 there were 142 genomics companies in the UK, 41 of which were university spin outs. 45 Similarly, the UK Office for Life Sciences found that in 2021/2022 there were 149 sites where genomics has been identified as a primary activity. 46
The largest group of these sites relate to application activities, where genomic information is used to provide diagnostics or inform drug development (67 sites, roughly 45% of sites). Sequencing activities account for the second highest number of sites (42 sites, roughly 28% of sites), followed by analysis (22 sites, roughly 15% of sites) and interpretation (12 sites, roughly 8% of sites). Sampling and unclassified activities make up the remainder (3 sites, roughly 2% respectively). This is highlighted in Figure 2 below showing a moderately growing trend across the genomic business base over time, with application activities showing the highest rate of growth.
Figure 2 - Number of UK genomic sites (2008/9-2021/22)
Employment
Employment at these sites has more than doubled from 3,200 in 2016/17 to 6,800 in 2021/2022. 47 The majority of these employees work in sequencing sites (3,761 employed at these sites, 56% of total employees). Application sites account for the second highest number of employees (2,259 employed at these sites, 33% of total employees) followed by Analysis and Interpretation (351 and 311, roughly 5% each). No employment data was available for sampling sites.
Figure 3 - Employment at UK genomics sites (2008/9-2021/22)
Source: UK Office for Life Sciences
Turnover
In 2021/22, the total turnover from UK genomics sites was £3.6billion – nearly double the level of industry turnover generated in 2011/12, as shown in Figure 4. Sequencing activity has consistently accounted for the largest part of the industry turnover. The share of turnover attributable to sequencing sites has grown significantly, rising from 50% of total turnover in 2008/09 to 88% in 2021/22. 48
Figure 4 – Turnover (£m) from UK genomics sites (2008/09-2021/22)
Source: UK Office for Life Sciences
Public and private investment
Public funding for genomics mainly takes the form of government grants and research funding. Between 2011 and 2021, the sector received £151 million in grant funding – equivalent to around a quarter of the total grant funding awarded to the UK’s life-sciences sector. 49 The UK Government has also allocated £175 million for genomics research. This includes:
- £105 million for a research programme, led by Genomics England in partnership with the NHS, to speed up diagnosis and treatment of rare genetic diseases in newborns.
- £22 million for Genomics England to tackle health inequalities in genomic medicine
- £26 million for a cancer research programme, led by Genomics England to improve the accuracy and speed of diagnosis for cancer patients and
up to £25 million of Medical Research Council-led funding for a 4-year functional genomics initiative.
There is limited public data available on levels of private investment in the genomics sector.
Between 2011 and 2021, the genomics sector raised £3.3 billion in equity funding – roughly 10% of the overall private funding in the UK life sciences sector. Just over half (£1.7 billion) was raised from private equity and venture capital firms with the remainder coming from sources such as corporate investors. 50
Data Availability
While it is important that the figures in this paper are considered in a broader context, there is limited comparable robust data available on levels of activity and investment in genomics internationally to allow benchmarking.
39 Information Commissioner’s Office (2022) Tech Horizon Report. (Accessed 19 April 2024).
40 Oxford Economics (2024) UK life-sciences are set for growth. (Accessed 26 April 2024).
41 Information Commissioner’s office (2023) Tech horizons report. (Accessed 5 March 2024).
42 Office for Life Sciences (2023) Bioscience and health technology sector statistics. (Accessed 11 March 2024).
43 UK Bioindustry Association (2023) Genomics Nation. (Accessed 28 February 2024).
44 UK Bioindustry Association (2023) Genomics Nation. (Accessed 28 February 2024).
45 UK Bioindustry Association (2022) Genomics Nation. (Accessed 28 February 2024)
46 Sites is an encompassing term used by the UK Office for Life Sciences. It includes genomics firms, other life sciences firms, university spin outs etc. The term sites refers to locations which are classified as level 1 or 2 genomic activity. Office for Life Sciences (2023) Bioscience and health technology sector statistics.
47 Office for Life Sciences (2023) Bioscience and health technology sector statistics. (Accessed 11 March 2024).
48 Office for Life Sciences (2023) Bioscience and health technology sector statistics. (Accessed 11 March 2024).
49 UK Bioindustry Association (2021) Genomics Nation. (Accessed 28 February 2024).
50 UK Bioindustry Association (2021) Genomics Nation. (Accessed 28 February 2024)