THE bioscience sector in Oxfordshire is booming with the county taking the lion’s share of UK investment.

A report by the Oxfordshire Bioscience Network (OBN) shows county firms in the field attracted £125m of investors’ cash – 80 per cent of the total for the whole of the UK. And it said overall investment was at its highest for five years and recovering to levels seen before the recession.

But while experts have welcomed the news, they have also warned that a lack of available properties for new firms investing in the county could cause stagnation in the future.

OBN chief executive Jon Rees said: “The continued strong performance of biosciences is great for the Oxfordshire economy, when taken together with the bid for an Enterprise Zone.

“Our research shows the companies are raising enough money to stay at the forefront of bio- medical research, leading the way and taking the lion’s share of UK investments.”

The OBN BioCluster Report is conducted every three years and shows there are 163 companies in the sector in Oxfordshire employing about 5,000 staff.

It reveals firms have emerged from the funding drought of 2008, in which just £37.5m of investment was generated.

The amount raised so far in 2011 equals what was raised in 2009 and 2010 combined.

Some 28 companies were added to the sector between 2008 and 2010.

Key deals this year include the sale of the Type 2 diabetes treatment developed by Oxford-based Prosidion for £374m and £60m of fundraising by allergy specialist Circassia based at the Oxford Science Park.

Nigel Wild, president of the Oxfordshire Chamber of Commerce and an expert in the biotech sector, described the report as “a silver lining in the dark cloud of the current economy”.

He said: “The recent announcement by e-Therapeutics that it is returning to Oxfordshire to benefit from world-class staff speaks volumes.”

But he echoed the fear that an unwillingness by property developers to expose themselves to risk could hamper future development.

Mr Rees said: “We’ve been advising for some time that there is a lack of an infrastructure system – there are virtually no unlet buildings left suitable for science-based research and development businesses in Oxfordshire.

“Ultimately, the risk adversity of developers may limit further growth.”