What can you tell us about the history of MassBio and your plans for its future as the new CEO?
MassBio - the first biotechnology trade organization in the world - was established in 1985 to educate local officials in Cambridge, Massachusetts about biotechnology and to consolidate the spending power of early biotech companies. It continues to play a crucial role in advancing Massachusetts' leadership in life sciences, fostering industry growth, and improving healthcare and patient lives.
Since joining in 2008, I have witnessed our membership grow from 300 to over 1,600 companies. This growth is largely attributed to our unique collaboration between industry, government, and academia, exemplified by the Life Science Initiative, a billion-dollar investment that began in 2008 and was renewed in 2018. As CEO, my focus is to continue this legacy, ensuring that Massachusetts remains a thriving hub for life sciences, bolstered by warm industry-academia-government collaboration.
Could you elaborate on the collaboration between Massachusetts' state and MassBio?
This collaboration has been pivotal in advancing the life sciences sector in Massachusetts. The Life Science Initiative, launched under the Patrick administration and renewed under the Baker administration, is a testament to this collaborative effort. It represents a bipartisan commitment to life sciences, encompassing investments in infrastructure, education, and early-stage company innovation. The initiative's success is reflected in the employment growth of over 110% in the sector. Our current governor announced plans for a third iteration of this initiative, further solidifying the state's dedication to maintaining its leadership in life sciences.
What sets Massachusetts apart as a leading location for life sciences, especially compared to places like California?
Massachusetts' distinction in the life sciences industry is primarily due to its unmatched density and richness of resources within a small area. Home to over a thousand biotechs, 18 of the top 20 biopharma companies, investors, numerous hospitals, and academic institutions, Massachusetts offers an unparalleled ecosystem. This concentration fosters a unique ‘bump factor’ in places like Kendall Square, enabling spontaneous interactions and collaborations among various stakeholders. Such a dynamic environment is conducive to partnership and innovation, setting Massachusetts apart from other regions, including tech-heavy areas like Silicon Valley.
Can you elaborate on the significance of Kendall Square in the Massachusetts life sciences landscape?
Kendall Square, often regarded as the most innovative square mile on the planet, is a microcosm of the state's thriving life sciences ecosystem. Its significance lies in its ability to facilitate spontaneous and productive interactions among leaders in biotech, academia, and investment. This area exemplifies the unique density of Massachusetts' life sciences community, where a simple coffee break can lead to meaningful connections and potential collaborations. Your proximity to potential partners, investors, cross-sector collaborators, students and recent graduates, just over the river from hospitals and state government—there is nowhere like it in the world.
What are some current developments in Massachusetts' life sciences sector?
A notable trend is the regionalization of the industry across Massachusetts. While areas like Kendall Square and Cambridge are well-known, we are seeing significant growth in clusters throughout the Commonwealth, such as Waltham, Lexington, and Worcester. This expansion is diversifying our biotech landscape and making it more accessible to emerging companies.
Despite market uncertainties and a shift in investment patterns post-COVID, Massachusetts continues to attract significant venture capital, because investors have faith in our science and innovation.
Our companies raised $7.7 billion in 2023, 31 percent of all VC funding nationally and the 4th highest year ever. This resilience, combined with the recent increases in M&A activities and sustained investment in Series B and C rounds that we have seen, tell us that the life sciences sector in Massachusetts has been robust and weathered the macroeconomic environment and is poised to grow a lot in 2024.
In your view, what factors contribute to the success or failure of biotechnology companies in Massachusetts?
Success in biotechnology hinges on the ability to attract top talent and strong investment. Massachusetts excels in this aspect due to its collaborative environment, where every necessary stakeholder is readily accessible. This network, comprising industry experts, investors, and academic institutions, provides unparalleled support and guidance. It has been instrumental in Massachusetts winning the ARPA-H Investor Catalyst Hub, a competitive national distinction. The state's capacity to rapidly advance science and make critical decisions about when to pivot or cease projects is a key factor in the success of its biotech companies. This ecosystem not only fosters innovation but also ensures that companies can make informed decisions quickly, a crucial aspect in the fast-paced world of biotechnology. I would be remiss to not also mention the physical proximity between startups and large biopharma companies—partnering, licensing, and acquisitions are an essential part of bringing medicines to patients.
Can you share any success stories of companies supported by MassBio?
We certainly support our member companies, but we also advocate for the local industry and catalyze innovation through our programming. Moderna, located right across from our office in Kendall Square, is a prime example. A longstanding member of MassBio, Moderna was just another biotech company working on mRNA technology before the pandemic. However, their focused efforts during COVID-19 changed the course of human health globally. Another Massachusetts homegrown company, Vertex, in collaboration with CRISPR, and Bluebird, recently developed two treatments for sickle cell disease. This kind of novel innovation, providing solutions for patient populations without alternatives, is where Massachusetts truly excels.
I think you have to look at our MassBioDrive business accelerator; our Pharma Days; and our Align Summit. These are the ways that we are directly supporting the ecosystem’s ability to thrive. The earliest stage companies participate in Drive for the business curriculum and mentoring and get to pitch to investors at the end of the course. Pharma Days pairs established pharmaceutical companies with startups, while the Align Summit again is all about spotlighting the most fascinating science and promising founders and introducing them to the investors who came who can help them advance their work.
How does Massachusetts balance innovation costs for rare disease treatments with health economics?
In Massachusetts, we are committed to investing in orphan and rare diseases because every patient matters. This commitment is a cornerstone of our ecosystem. We often discuss health equity, striving to ensure that the innovations created here are accessible to all patients. However, regulatory barriers like the IRA pose challenges, making it difficult to justify investments in research for diseases with fewer patients. Despite these hurdles, our focus remains on providing solutions to these underserved communities.
What is your perspective on the IRA and its impact on the biotech industry in Massachusetts?
The IRA is deeply concerning for us at MassBio. While its intent was to aid patients, its execution could stifle innovation. Many of our member companies are altering their research pipelines and moving away from small molecule research due to the IRA. This shift is alarming as it could lead to a significant reduction in new drugs available in the future. Our hope is that bipartisan fixes in Congress could address some of the most detrimental parts of the law. Furthermore, recent regulatory actions, like FTC's intervention in potential licensing deals and M&A, and the Biden administration's guidance on Bayh-Dole that challenges IP and patents, are worrisome. These policies could hinder life science innovation, particularly affecting treatments for rare diseases, and precipitate a shift of research and funding outside of the United States.
As CEO of MassBio, what are your plans for the future?
I’m going to continue highlighting the incredible work of our member companies. At MassBio, we emphasize being patient-driven. Our companies are committed to researching orphan and rare diseases because they know patients are waiting for solutions. It is vital to share these stories of innovation with our community, government partners, and at a national level. Massachusetts plays a significant role in both national and global drug development, and it's important to recognize our disproportionate impact compared to our size. We cannot allow policy barriers to hinder our ability to bring solutions to patients worldwide.
