MassBio, an organization representing more than 1,700 life sciences members in Massachusetts, reported that its biopharma sector saw job losses in research and development (R&D) and biomanufacturing for the first time in recent memory.
“R&D employment declined by 1.7% in 2024, a smaller drop than California, Maryland, and New Jersey,” according to MassBio. “Biomanufacturing jobs fell for a second consecutive year (-1.5%), even as Florida, New Jersey, and Texas posted strong gains.”
MassBio reported an additional 1.1 million square feet of lab and biomanufacturing space came online in 2024, bringing the total inventory to 63.2 million square feet. As a result, lab vacancy rates in Cambridge (22.9%), Boston (38.3%), and the suburbs remained high, which the report called a “short-term challenge for owners, but a long-term benefit for the ecosystem.”
The findings were published in the group’s 2025 Industry Snapshot, which benchmarks the Commonwealth’s industry against historic trends and competing clusters across employment, investment, drug development, and real estate.
The report attributed the downturn to the lowest level of venture capital funding since 2017, combined with changing federal and regulatory policies, according to the organization. Venture capital investment in Massachusetts biotechs fell 17% year-over-year in the first half of 2025, with more than half of funding concentrated in the top 10 deals. IPO activity remained limited, mergers and acquisitions were slow to recover, and National Institutes of Health funding also declined.
Despite the slowdown, Massachusetts still captured 22.5% of all U.S. biotech venture capital in the first half of 2025, second only to California, the report said. According to MassBio, pipeline strength remains a bright spot, with Massachusetts representing 15.7% of the U.S. pipeline of drug candidates and 6.4% of the global pipeline.
“This report shows how restrained funding is impacting hiring but also highlights that the Commonwealth’s longtime advantages—talent, partners, science, and infrastructure—position Massachusetts for a strong rebound once confidence returns,” Kendalle Burlin O’Connell, CEO and president of MassBio, said in a statement.
The organization said the Commonwealth is positioned for recovery with a new 10-year public-private commitment through the reauthorized Massachusetts Life Sciences Initiative and continued collaboration between industry and government.