Top 10 U.S. Biomedical & Pharma Clusters of 2024—Part I

Despite massive global changes over the past 45 years, the leading biotech regions remain consistent, according to recent research. A study by European academics analyzed biotech cluster growth from 1978 to 2015. They identified San Francisco Bay Area, Massachusetts, and Japan’s Southern Kanto region as the top three clusters. These regions thrived due to early investment, scientific excellence, robust networks, and diverse business ecosystems. The researchers emphasize that successful biotech clusters require vibrant, excellent science bases, and broad entrepreneurial support.

Supporting these findings, Northern California and Massachusetts, along with Japan’s Southern Kanto region, consistently ranked among the top global biotech clusters due to early investment and sustained scientific output. Leading investments in biotech have shown a lasting impact, evident in the continued prominence of these areas. The study, led by Bart Van Looy and colleagues, assessed biotech patents and articles to gauge innovation and activity levels. Ultimately, factors such as diverse funding sources (including NIH funding and venture capital funding), extensive laboratory space, and significant job numbers contribute to the ongoing success of these leading clusters.

1. Boston/Cambridge, MA

Boston and Cambridge top the list again, driven by their strong scientific research and business capabilities. The region boasts world-class institutions like MIT and Harvard University and hosts leading biopharmaceutical companies. In 2024, Boston/Cambridge ranks first in NIH funding, laboratory space, venture capital investment, and patents. It has 61.9 million square feet of lab space and received $7.67 billion in venture capital in 2023, according to the Massachusetts Biotechnology Council (MassBio). Additionally, the region leads the country in biopharmaceutical jobs, with 116,937 positions.

Boston/Cambridge excels in NIH funding with 8,954 awards totaling $5.219 billion and in lab space with 61.9 million square feet. The area also ranks first in venture capital, securing $7.67 billion in 2023 and $3.04 billion in early 2024. It places second in patents with 23,853 families but ranks fifth in employment.

2. San Francisco Bay Area

The San Francisco Bay Area ranks second due to its strong innovation capabilities and ample financial support. The region is home to biotech giants like Genentech and Gilead Sciences, offering around 50.6 million square feet of lab space and securing $6.63 billion in venture capital in 2023. Despite its financial strength and rich patent portfolio, the Bay Area faces challenges. Recent job cuts affected companies such as BioMarin Pharmaceutical, Genentech, and Pfizer, though Astellas Pharma’s new $90 million Innovation Center brings optimism.

San Francisco may host the J.P. Morgan Healthcare Conference in January, as anticipated, despite previous venue change speculation. The region’s venture capital performance reversed from last year, with $6.63 billion in 2023 and $3.75 billion in the first half of 2024, according to BIOCOM California. Although the Bay Area led in jobs with 156,454, it finished second in venture capital and patents, and fourth in NIH funding, with 6,547 awards totaling $3.64 billion.

3. BioHealth Capital Region (Maryland, Virginia, and Washington, D.C.)

The BioHealth Capital Region retains its number-three ranking due to notable developments and investments. QIAGEN and Frederick County, MD, recently completed a 40,000-square-foot expansion, creating a 75,000-square-foot facility focused on next-generation sequencing and genomics. AstraZeneca plans to invest $300 million in a new manufacturing site in Rockville, MD, set to open in 2026 and create 150 jobs. The University of Virginia is constructing a $300 million biotechnology institute in Charlottesville. 

Despite these positives, the region faced setbacks as Emergent BioSolutions announced plans to cut 300 jobs and close two sites, though it sold a third site to Bora Pharmaceuticals for $30 million. The BioHealth Capital Region leads in patents with 73,315 families, driven by institutions like Johns Hopkins University and the NIH. It ranks third in NIH funding with 5,558 awards totaling $4.342 billion, jobs with 136,164, and lab space with 35.9 million square feet. In venture capital, the region improved to fifth place with $1.92 billion in 2023 and $1.01 billion in early 2024, according to PitchBook data.

4. New York/New Jersey

The New York City Economic Development Corp. is seeking a developer for the Science Park and Research Campus (SPARC) in Manhattan’s Kips Bay, offering up to one million square feet of life sciences space, with expressions of interest due by August 6. Regeneron Pharmaceuticals is finishing a $1.8 billion expansion in Tarrytown, NY, and has invested nearly $39 million in a former Avon campus in Suffern, NY. In New Jersey, significant projects include the $731 million HELIX and $750 million Jack and Sheryl Morris Cancer Center in New Brunswick, and BeiGene’s $800 million U.S. Manufacturing and R&D Center in Hopewell.

The New York/New Jersey region ranks second to Boston/Cambridge in NIH funding with 9,052 awards totaling $5.098 billion, and second in jobs with 149,100, according to Cushman & Wakefield. It places fifth in lab space with 24 million square feet, but ranks sixth in patents (10,474 families) and venture capital, with $1.43 billion in 2023 and $1.13 billion in early 2024, according to PitchBook and Colliers.

5. San Diego

This year’s Biotechnology Innovation Organization (BIO) International Convention host city is celebrating notable achievements. Element Biosciences secured over $277 million in Series D financing in July to advance its AVITI™ DNA sequencer and the AVITI24™ platform. Mirador Therapeutics raised over $400 million in March for its precision medicine efforts, while Radionetics Oncology partnered with Eli Lilly in a deal worth $1.14 billion, enhancing Lilly’s regional footprint that includes the Lilly Biotechnology Center and Gateway Labs coworking space. New developments include IQHQ’s $1.6 billion, 1.7 million square foot Research and Development District (RaDD) and Sterling Bay and Harrison Street’s $650 million, 500,000-square-foot Pacific Center. Pfizer Oncology also expanded its regional presence with a 15-year lease for 230,000 square feet at Breakthrough Properties’ Torrey View campus.

San Diego has risen to third in venture capital with $2.27 billion in 2023 and $2.48 billion in early 2024, according to BIOCOM California. The city remains fourth in lab space with 25.084 million square feet and fifth in patents with 13,931 families. However, it ranks seventh in jobs with 75,816 and has slipped to 10th in NIH funding with 2,634 awards totaling $1.631 billion.

Technological Advancements in Leading U.S. Biomedical Hubs: Innovations, Investments, and Infrastructure

Boston/Cambridge, MA continues to lead with unmatched research capabilities, extensive lab space, and significant venture capital investment. Meanwhile, the San Francisco Bay Area excels in innovation and financial support despite recent job cuts. Additionally, the BioHealth Capital Region makes notable strides in patents and investments, although it faces some challenges. Furthermore, New York/New Jersey showcases impressive growth with major projects and high job numbers, while San Diego benefits from substantial venture capital and new developments. Overall, these regions each demonstrate unique strengths and ongoing advancements in the U.S. biomedical and pharma sectors.

Reference: Genetic Engineering and Biology News

Author

Bernice Lottering