Massachusetts’ biopharma industry lost thousands of jobs last year, but investment in the sector has rebounded, according to a report released Tuesday by MassBio.
The industry shrank for the first time in the more than two decades MassBio has tracked this data, with around 3,600 roles cut in 2025. The job losses were concentrated in research and development, while biomanufacturing saw some gains, according to the report.
But, overall, investors are still backing the industry. Venture capital funding is up 25% for the first half of this year compared to the same period last year, when funding dropped to its lowest levels since 2017, the report found. In total, investors have poured $3.45 billion into Massachusetts companies this year.
“This is capital that companies are going to be able to put towards research and development, and down the line that’ll turn into therapies for patients around the world,” said MassBio spokesperson Ben Bradford.
The trade group’s annual report examines employment, investment, drug development and other metrics in the state’s biopharma sector.
The biopharma sector has struggled over the last year, due to federal funding cuts and layoffs. The state has made investments, but federal funding remains a challenge. While Massachusetts drew around 9% of all funding from the National Institutes of Health in 2025, the total dollar amount and number of awards issued was lower than in the previous year.
While a large portion of venture capital went to a few companies, Bradford said he hopes the investments also will create more biopharma jobs. Companies will likely still be cautious in their hiring, he added.
“ That’s what we’ve heard anecdotally from companies, is that growth will be more measured,” Bradford said.
There are some other signs of momentum in the industry. Eight Massachusetts biopharma companies have gone public in the first half of this year, according to the report. And companies have been acquired at higher values than last year.
Bradford said this is a sign the broader industry is refilling its pipelines and looking to Massachusetts to “ get the best science.”
Massachusetts is a key part of the U.S. drug development pipeline, making up 17% of it. But the state faces growing global competition. According to the report, China has accelerated its drug development pipeline — growing it by 36% between July 2025 and July 2026 — and surpassing Europe for the first time.
The U.S. still leads in this area, but its drug pipeline grew by less than 1%, according to the report, which included a new section focused on China’s biopharma industry.
“ This is an industry where speed matters,” Bradford said. “If trials are happening faster in China, that’s where companies are going to do that. So that’s one of the things that we’re watching.”