The Commonwealth continues to grab a greater share of venture capital dollars; investments reach all-time high
The Commonwealth continues to grab a greater share of venture capital dollars; investments reach all-time high
August 29, 2018 (CAMBRIDGE, MA) – 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 nearly half of all US-based biotech IPOs (48%), 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 investments in Massachusetts biopharmas has nearly reached 2017 totals, with $2.7 billion invested. The average deal size has also increased dramatically year-over-year, going 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 6 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 in partnership with EvaluatePharma®, the premier source for commercial analysis of the pharma and biotech sector. 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.
Download the full report here.
For media inquiries, contact Jennifer Nason.
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About MassBio
MassBio is a not-for-profit organization founded in 1985 that represents and provides services and support for the Massachusetts life sciences industry. MassBio is committed to advancing Massachusetts’ leadership in the life sciences to grow the industry, add value to the healthcare system and improve patient lives. Representing more than 1000+ biotechnology companies, academic institutions, research hospitals, and service organizations involved in life sciences and healthcare, MassBio works to advance policy and promote education, while providing member programs, events, industry information, and services.
For more information, visit www.massbio.org
