- Posted by ISPE Boston
- On August 29, 2018
The Massachusetts Biotechnology Council (MassBio) today released its 2018 Industry Snapshot report, which shows that Massachusetts biotechs dominated the IPO market in 2017, accounting for 48% of all US-based biotech IPOs, up from 30% in 2016. 2018 has already outpaced 2017 in terms of total Massachusetts IPOs at 15, which accounts for nearly 40% of all US-based biotech IPOs (January – July 2018). The industry’s success is also expanding across the Commonwealth, with half of the 2017 Massachusetts-based IPOs occurring in biotechs outside of Cambridge in places like Waltham, Newton and Burlington.
When looking at the investment side, it’s a similar story. In 2017, venture capital investment in Massachusetts biopharma companies was $3.1 billion, the highest ever, which accounts for 37% of all US biopharma VC dollars. In just the first two quarters of 2018, VC investment in Massachusetts biopharmas has nearly reached 2017 totals, with $2.7 billion invested. The average deal size has also increased dramatically year-over-year, from $34 million in 2017 to $51 million in the first two quarters of 2018.
“Massachusetts biopharmas continue to lead the industry in tackling the toughest unmet medical needs, creating a new wave of breakthrough therapies that treat the underlying cause of disease, not just the symptoms, and some that people are even calling cures,” said Robert K. Coughlin, President & CEO of MassBio. “Cumulatively, it’s creating unbelievable opportunities to change the course of disease and improve the lives of patients, and investors want to be a part of this. The money will continue to follow the science, and biotech startups will continue to grow throughout Massachusetts, spreading the wealth across the state.”
Job growth in the Massachusetts biopharma industry remains strong, with consistent 4-5% increases in the last few years, and nearly 30% growth over the last decade (28% from 2008 – 2017). Massachusetts also continues to attract a greater share of public funding, with:
- Five of the top six NIH-funded independent hospitals
- 57% of all NIH funding to independent hospitals
- $1.25 billion to Massachusetts centers of higher education and research institutes in 2017
The 2018 Industry Snapshot was produced by MassBio in partnership with EvaluatePharma®. Snapshot statistics are compiled annually by MassBio from sources including EvaluatePharma, National Institutes of Health, the U.S. Bureau of Labor Statistics, the Quarterly Census of Employment & Wages and others. (Source: MassBio Website 08.29.18)
To read the complete report, click here: 2018 Industry Snapshot report.