Lab and life science innovators often lack the knowledge and resources to expand into foreign markets. That’s where UK Export Finance could make a difference, says Tim Reid.
UK Export Finance (UKEF) supports companies of all sizes and sectors across the UK. However, as outlined in the Industrial Strategy [1], there are a handful of growth-driving sectors, known as the ‘IS-8’, covering everything from clean energy industries to financial services, and crucially, life sciences. These are the industries the government believes have the most potential to grow and boost the UK economy.
Within life sciences, the government has identified two leading industries: Biopharma and MedTech. Biopharma companies develop and produce their own pharmaceutical products, while medtech firms focus on medical technology products. The sector drives innovation, advances research and improves health outcomes.
After 15 years of exporting, the company wanted to grow further overseas but faced challenges securing commercial insurance for new markets
Despite its strengths, life sciences companies often face challenges when exporting. Reaching new markets can be complex, and access to finance or insurance can be a barrier. UKEF helps address these challenges, providing loans, guarantees, and insurance so that viable exports can proceed, enabling businesses to grow and contribute to the UK’s global reputation in life sciences.
How exporting supports growth
Exporting enables life science companies to reach new markets, diversify revenue streams and share expertise internationally. It also strengthens resilience by reducing reliance on a single market.
The UK life sciences sector is substantial: in 2023/2024, there were 6,170 businesses operating across 7,320 companies, employing 359,600 people and generating £146.9 billion in turnover [2].
Despite this strength, expanding internationally can present challenges. Smaller companies, or those with limited cash flow, may struggle to access finance or navigate the knowledge required to take on overseas contracts. UKEF provides practical solutions, such as the General Exporting Facility [3], a government-backed guarantee that helps UK businesses, especially SMEs, access trade finance (loans, letters of credit, bonds) of up to £25 million from partner banks.
This facility unlocks working capital for growth, inventory and operational costs, and is not tied to specific contr acts, covering up to 80% of the lender ’s risk, enabling businesses to seize export opportunities and overcome barriers to growth.
By supporting exporters, UKEF enables life science companies to grow sustainably while contributing to research and healthcare improvements worldwide. Export opportunities increase revenue, attract investment, foster innovation and support high-value jobs across the UK, ensuring the sector continues to thrive on both a domestic and global scale.
How life science firms expand globally
Digital Pixel is a strong example of how a life sciences business can be supported to grow internationally with UKEF support. Brighton-based Digital Pixel supplies advanced microscopy systems and has, for over 20 years, provided technology to organisations driving research, including Cancer Research UK, the University of Cambridge, the University of Oxford, and several other European universities.
Despite this experience, Digital Pixel had not expanded beyond the UK, Europe and Australia. After 15 years of exporting, the company wanted to grow further overseas but faced challenges securing commercial insurance for new markets.
When the opportunity came to supply parts of a medical telescope to the Middle East – where it had no existing trading relationship – the company turned to UKEF. They initially applied for the Export Insurance Policy, which made them eligible for the Small Export Builder.
The Small Export Builder [4] is a flexible export insurance policy for SMEs. It starts with contracts up to £25,000, and as buyers fulfil each contract, the insurance credit limit can increase incrementally by 50%, up to £100,000. This support gave Digital Pixel the confidence and security to pursue new international contracts.
With UKEF in place, the firm overcame barriers that often hold back small businesses. The company can now expand its international reach while continuing to contribute to crucial research, driving growth and innovation without financial constraints.
The road ahead
As outlined in the life sciences sector plan [5] this year, the Government aims to support research and development, attract investment, grow advanced manufacturing and accelerate health innovation. The plan seeks to position the UK as Europe’s leading life sciences economy by 2030, and the third globally b y 2035, behind only the United States and China.
Although the life sciences sector already receives significant support, there is still huge potential for further growth. Businesses that have not yet explored exporting should be encouraged to do so, and where financing presents a challenge, UKEF provides a practical route to access the support they need.
References:
1 https://www.gov.uk/government/publications/industrial-strategy
2 https://www.gov.uk/government/ statistics/bioscience-andhealth- technologysector-statistics-2023-to-2024/bioscience-andhealth-technologysector- statistics-2023-to-2024
3 https://www.gov.uk/guidance/general-exportfacility
4 https://www.gov.uk/guidance/export-insurancepolicy#small-exportbuilder
5 https://www.gov.uk/government/publications/lifesciences-sector-plan
Tim Reid is chief executive officer, UK Export Finance
