The biotech industry in Massachusetts is currently facing a challenging downturn, with significant impacts on pipeline growth, venture funding, federal support, and sector employment. According to a report from MassBio, uncertainty and market sluggishness have replaced cautious optimism in the state’s biotech landscape.
MassBio CEO Kendalle Burlin O’Connell painted a grim picture of the situation, citing tariffs, pricing issues, and regulatory changes as factors contributing to the industry’s struggles. Layoffs have been rampant, with over 4,100 biotech employees losing their jobs in 2025, including major players like Moderna and Sarepta Therapeutics.
Venture capital funding in Massachusetts has also seen a decline, with total funding 17% lower in the first half of 2025 compared to the previous year. While the state still receives a significant portion of U.S. venture capital funding, the lack of financial support has impacted the industry’s ability to innovate and grow.
Despite these challenges, Massachusetts remains a hub for biotech innovation, with infrastructure and talent that can support a recovery. The state still has over 63 million square feet of lab and manufacturing space available, and major drugmakers like Eli Lilly, Novo Nordisk, and Pfizer continue to operate in the region.
While the outlook may seem bleak, O’Connell expressed confidence in Massachusetts’ ability to bounce back from the current crisis. With a history of resilience and a strong foundation in biotech, the state is well-positioned to lead the industry’s resurgence in the future.
