The U.K. biotech ecosystem continues to flourish based on strong fundamentals, according to a new State of the Nation report by Ernst & Young and the BioIndustry Association (BIA), a trade association for innovative enterprises involved in U.K. bioscience.

The report shows:

• The U.K. leads Europe in the total amount of innovation capital raised ($1.2 billion), as well as number of financing rounds (36) for the first half of 2014
• 2014 is set to be a banner year, as the total for the first half of 2014 already has surpassed the total of $776.8 million of innovation capital raised in 2013
• European life sciences financing in the first half of 2014 already has surpassed the $3.4 billion raised in 2013
• The U.K. remains the largest bioscience cluster in Europe, developing over 450 product candidates in 2013.

Steve Bates, CEO of the BIA, said, “2014 has been a strong and confident year for U.K. life science companies. This year, for the first time in many years, we’ve seen IPOs return to the sector.  Companies large and small, academia, research charities, new institutions and the NHS now mix together in our ecosystem to make it one of the most vibrant and dynamic in the world.”

Ian Oliver, executive director of assurance at EY said, “Since our last U.K. report, I’m delighted to say that the life sciences industry has started to make up much of the ground it lost during the financial crisis, in both the U.K. and on a global scale. In early 2014, the U.K. AIM and main markets began to host U.K. life sciences company admissions, taking advantage of the positive momentum developed by U.S. investors in 2013, including one of the largest biotech IPO fundraisings seen on the London market by Circassia.