Leading Biopharmaceutical Hubs in the U.S.A. by 2025
In the rapidly evolving world of life sciences, several significant developments have taken place across the United States. Here's a roundup of the latest news:
Leases and Expansions in Chicago
Trammell Crow has announced leases, extensions, and expansions totaling 40,000 square feet at its 400 North Aberdeen in Chicago's Fulton Market section. Life-sci VC firm Portal Innovations, Chan Zuckerberg Biohub Chicago, and P33 are among the companies that have secured space in this bustling district.
Global Cell Therapy Partnership
Minaris Regenerative Medicine has joined forces with WuXi Advanced Therapies' U.S. and U.K. operations to form Minaris Advanced Therapies™. This global cell therapy Contract Development and Manufacturing Organization (CDMO) and testing partner is headquartered in Philadelphia.
Addressing Unmet Medical Needs
Hallie Kuhn, Alexandria's senior vice president of life science and capital markets, emphasized the importance of addressing unmet medical needs. She pointed out that nine out of ten diseases have no approved therapies, and chronic conditions impact 129 million Americans - nearly 40% of the nation's population - driving more than $4.5 trillion in annual healthcare costs.
Job Cuts in Greater Philadelphia
Several biopharma companies in Greater Philadelphia, including Century Therapeutics, Tmunity Therapeutics, Carisma Therapeutics, Passage Bio, and Spark Therapeutics, have experienced job cuts.
Pfizer Oncology Expands in San Diego
Pfizer Oncology has moved into Breakthrough Properties' Torrey View campus in San Diego, signing a 15-year, 230,000-square-foot lease.
Vetter Pharma's Expansion in Illinois
German CDMO Vetter Pharma is breaking ground on a $285 million clinical manufacturing site in suburban Des Plaines, IL.
Merck & Co. Acquires Verona Pharma
Verona Pharma, a lung disease drug developer with U.S. HQ in Raleigh, NC, has been acquired by Merck & Co. for $10 billion.
Growth in San Diego's Life Science Sector
San Diego's life science sector has seen significant growth. Alexandria Real Estate Equities has leased 466,598 square feet to an undisclosed tenant for a build-to-suit research hub, and the J. Craig Venter Institute has relocated to the Research and Development District (RaDD).
Emerging Regions in the U.S.
The regions in the United States that have emerged as strongest in the three pillars of growth promotion mentioned by Hallie Kuhn are the Boston-Cambridge area, San Francisco Bay Area, and San Diego.
New Developments in California
Sterling Bay and Harrison Street have opened the first phase of their Pacific Center life-sci campus in Sorrento Mesa, San Diego. In the San Francisco Bay Area, Genentech eliminated 143 jobs at its South San Francisco campus in June.
Job Cuts and Developments in Other Regions
The BioHealth Capital Region, home to the FDA and NIH, has seen job cuts, with the FDA eliminating 3,500 jobs, and the NIH 1,200 jobs, respectively. In Seattle and Greater Puget Sound, Regeneron Pharmaceuticals is completing a $1.8 billion expansion of its Tarrytown, NY, headquarters campus. In New Jersey, H-1, the first phase of the Health & Life Science Exchange (HELIX), a three-building, 1.6 million-square-foot downtown campus, is being developed.
Continuing Innovation and National Security
Kuhn also highlighted the importance of continuing innovation, with U.S.-headquartered companies accounting for 55% of global biopharmaceutical R&D investment and six out of every ten FDA-approved therapies. She also mentioned enhancing national security as a key factor, citing Alexandria's support for biopharma-focused efforts to bolster the nation's security.
Venture Capital and Patents
San Diego and vicinity remain third in venture capital, thanks to deals led by the $180 million Series A financing of autoimmune drug developer Timberlyne Therapeutics. Los Angeles / Orange County placed fifth in venture capital and led the nation in jobs, but finished seventh in patents, eighth in lab space, and ninth in NIH funding.
Funding and Developments in New York City
Two life sciences mega-campuses, SPARC Kips Bay and Innovation East, are under construction in New York City, totaling over 2.5 million square feet of life-sci space and creating over 4,100 jobs.
CDMO National Resilience's Job Cuts
CDMO National Resilience has cut 120 jobs at its gene therapy plant in Durham, acquired from Bluebird Bio in 2021.
Tune Therapeutics' Series B Financing
Tune Therapeutics, an epigenetic editing therapy developer based in Durham, NC, and Seattle, raised over $175 million in Series B financing.
The Broad Institute's Job Cuts
The Broad Institute of MIT and Harvard in Boston/Cambridge laid off 75 staffers in June, a cost-cutting move blamed on shrinking federal research funding.
Fujifilm Biotechnologies' Expansion
Fujifilm Biotechnologies will open the first phase of its $3.2 billion end-to-end biomanufacturing facility in Holly Springs, NC in September.
Regeneron Pharmaceuticals' Expansion
Regeneron Pharmaceuticals is completing a $1.8 billion expansion of its Tarrytown, NY, headquarters campus.
Marcus's Remarks on Economic Times and Biotech Companies
Joel S. Marcus, Alexandria Real Estate Equities' executive chairman, mentioned the 15% cap on reimbursement for indirect costs such as research facilities and administrative expenses across all agency grants at the NIH. He also cited the abrupt exit of several senior FDA administrators, one of which briefly triggered declines in cell and gene therapy stocks. However, Marcus recalled that some of the strongest biotech companies have emerged during challenging economic times, such as Alnylam in 2002 after the 2001 recession and Moderna in 2010 after the "Great Recession" of 2007-09.
Chicago's Rankings
Chicago placed eighth in NIH funding, ninth in patents and jobs, and finished 10th in lab space and venture capital.
