M
assachusetts, home to the nation's top life sciences cluster, is facing severe consequences due to a cascading crisis in the biotechnology sector. A new report by the Massachusetts Biotechnology Council (MassBio) warns that deep federal cuts to NIH funding, significant FDA staffing reductions, and new trade barriers threaten to disrupt the entire innovation pipeline.

    "Biotech is not just an industry - it's a cornerstone of our state and national strength," said Kendalle Burlin O'Connell, CEO and President of MassBio. "Without policy stability and renewed investment, we will cede leadership in a sector that defines the future of medicine, creates high-wage jobs, and safeguards our economic and national security."

    The report highlights critical vulnerabilities across the U.S. biotech ecosystem:

    * NIH cuts jeopardize foundational research, which supports over 8 jobs per $1 million in funding and has led to the development of 99% of drugs approved between 2010 and 2019.

    * FDA workforce reductions create costly delays, with half of biotech respondents reporting negative impacts and two-thirds expressing concern over future delays in drug approvals.

    * New trade barriers strain supply chains, projected to raise hospital drug costs by 15% and delay product launches.

    The report also notes that venture capital is flowing out of biotech due to heightened policy risk and regulatory uncertainty. Early-stage deal values have dropped to a four-year low, as investors opt for sectors with faster returns and lower volatility.

    Asia now leads the world in biotech patent filings and IPOs, largely driven by China. Without urgent U.S. policy action, the report warns that the innovation frontier may permanently shift abroad.

    MassBio urges federal policymakers to reverse NIH and FDA cuts, avoid disruptive trade policies, and commit to a long-term innovation strategy that supports life sciences growth. "Strategic investment in research, a fully staffed regulator, and stable, open supply chains are imperative," said Burlin O'Connell. "By reversing the cuts to funding and staff, and establishing policies that foster innovation, ensure patient access, and support the long-term growth of the life sciences sector, the United States can accelerate development of the next generation of life-saving therapies, secure high-value jobs, maintain global leadership, and reinforce national security."