Top 3 British Biotech Stocks To Watch In October 2026

Big Tech is pouring more than US$700b into AI infrastructure this year, and healthcare is one of the key testing grounds for whether that spending pays off. That puts British biotech shares in an intriguing spot, as companies try to plug AI into drug discovery, diagnostics and clinical workflows. This article highlights 3 UK biotech stocks from our quality screen that could help you gain exposure to that theme.

The three stocks highlighted below are only a snapshot of what came out of this quality screen, and the full set of results includes 3 more biotech companies with equally compelling narratives that are not covered in this article. If you want to identify and analyze the highest conviction healthcare AI and biotechnology ideas, head straight to the Biotech Stocks screener.

Overview: Hikma Pharmaceuticals develops and supplies generic, specialty and branded medicines, with a major focus on hospital-use injectable therapies worldwide.

Operations: Hikma generates about US$1.4b from Injectables, US$1.0b from Hikma Rx, US$914 million from Branded products and US$46 million from Others.

Market Cap: £3.4b

Hikma Pharmaceuticals plugs into the Biotech Stocks theme through its Injectables arm, giving you exposure to complex hospital treatments without relying solely on early stage drug discovery risk.

Continued emphasis on high-value, complex generics and specialty injectables, supported by both internal R&D and strategic acquisitions (such as Xellia), directly aligns with the increasing adoption of generics by healthcare systems seeking cost containment. This focus provides Hikma with access to higher-margin opportunities and the potential for earnings expansion.

What happens to Hikma Pharmaceuticals’ appeal if one unseen pressure quietly reshapes how much profit it can keep from each injectable sold?

That margin pressure is exactly what the full narrative for Hikma Pharmaceuticals unpacks, showing how Hikma Pharmaceuticals could balance complex generics, pricing power and capital allocation as AI reshapes hospital demand.

Overview: Oxford Biomedica is a contract manufacturer that supplies viral vectors like LentiVector and AAV platforms for gene and cell therapies worldwide.

Operations: Oxford Biomedica earns about £88 million from Manufacturing Services, £60 million from Development Services, £22 million from Procurement Services and £5 million from licences, milestones and royalties, largely tied to viral vector contracts.

Market Cap: £631 million

Oxford Biomedica matters for this biotech screen because its viral vector manufacturing gives you targeted exposure to the gene and cell therapy supply chain rather than a single clinical trial outcome.

Expansion into AAV and other vector types diversify their revenue streams, reducing dependency on any single vector type and potentially enhancing overall earnings and EBITDA margins.

The real swing factor is how quickly that broader vector ordering pipeline converts into steady manufacturing margins before funding pressures bite.

That tipping point is exactly where the full narrative for Oxford Biomedica shows how Oxford Biomedica could turn volatile project flows into accelerating and higher quality capacity demand.

Overview: Genus develops and sells biotech driven animal genetics, supplying improved cattle and pig semen, embryos and breeding services to farmers globally.

Operations: Genus PIC generates £355.8 million, Genus ABS £299.8 million and Central activities £2.5 million, with meaningful exposure across the Americas, Europe and Asia.

Market Cap: £1.5b

Genus gives this biotech screen a different flavour, since its genomics work shows up in herds and barns rather than hospital labs. This makes its spending decisions crucial for how much of that science eventually turns into hard cash.

Although the PRP program is progressing through approvals in markets such as Canada, Mexico and Japan, planned PRP expenditure of about £13m in FY26 with a further increase guided for FY27 means cash outflows are locked in before revenue arrives.

The real question is how that timing gap interacts with one key pressure on future profitability that most investors are only starting to notice.

That pressure point is exactly where the full narrative for Genus shows how Genus could turn heavy PRP spend into accelerating cash generation and an overlooked rerating story.

Seeking Alternatives Before The Crowd

New ideas move first. Once momentum hits, prices adjust fast and the best entry points vanish. Scan fresh opportunities that are under the radar for now and get in early.

• Spot income workhorses before yield hunters pile in by running your eye over the 1 dividend fortresses; it is built to surface durable payouts that still look reasonably priced.

• Track where smarter capital is quietly rotating by checking the 4 resilient stocks with low risk scores, which is curated to highlight resilient balance sheets with steadier risk profiles.

• Explore the next leg of the AI build out by scanning the 92 AI infrastructure stocks, which is focused on companies supplying the picks and shovels for that expansion.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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