Anastasia Barnes recently interviewed Joe Boncore, a former Massachusetts state senator and the former CEO of MassBio. Boncore is currently the principal of Commonwealth Counsel, a full-service public affairs consulting firm dedicated to successfully navigating clients through the myriad of pathways of Massachusetts’ political, legislative and regulator environments.
Anastasia Barnes: Massachusetts has long been a global leader in the life sciences sector. What recent trends and developments have you observed in the state’s life science industry, and how are they shaping its future?
Joe Boncore: After two record years of growth in 2020 and 2021, we have been experiencing a reset in the industry. Wall Street’s interest in new biotech’s has waned and demand for lab space has diminished. However, the strength of the ecosystem in Massachusetts due to our history of addressing the world’s unmet medical needs through more complex drug development and hosting the R&D operations for the largest pharmaceutical companies will lead to a quicker rebound for the Bay State.
This year, our workforce has grown by almost 10% and there are over 17,000 local job openings which suggests the demand for lab space will come back. In 2023, Massachusetts companies have accounted 32% of all venture funding in the industry and we remain the No. 1 market for the life sciences. Furthermore, with the recent announcement that the National Institutes of Health (NIH) has selected Boston/Cambridge to host its Investor Catalyst Hub for ARPA-H, the federal government is signaling to the world that Massachusetts is still the best place in the world to foster collaboration among researchers, entrepreneurs and investors to accelerate innovative ideas that will transform healthcare.
AB: How does the current state of the life science sector in Massachusetts impact the commercial real estate landscape, and what opportunities does it present for real estate developers and investors looking to enter this market?
JB: Coming out of record years in 2020 and 2021, 2023 has shown to be a normalization of the commercial real estate market in the life science sector, however the demand for lab space remains higher than pre-pandemic levels. Greater Boston has over 15 million sq. ft. of lab space being developed, however current market conditions (i.e. high cost of capital and high construction costs) will have the effect of slowing more projects from being started until venture capital ramps back up in this industry. Massachusetts has an inventory of 61.9 million sq. ft. of lab space and in this market correction smaller early stage companies will have an easier time finding space that suits them at less cost.
AB: Massachusetts’ life science industry relies on robust infrastructure and specialized facilities. Can you discuss any recent developments or initiatives aimed at supporting the expansion and modernization of life science facilities and how industry professionals can get involved?
JB: The partnership between industry and government has been the defining factor of Massachusetts’ success as the No. 1 ecosystem in the world for research and development. In 2008, the Commonwealth committed to a $1 billion investment in the industry. Over the next ten years, we were able to attract 18 of the top 20 biopharma companies, help academia build specialized facilities and industry build infrastructure that is the envy of the nation. In 2017, the Commonwealth made an additional investment of $620 million. Now, with that authorization set to expire the new administration must double down on efforts to train more workers, regionalize industry with investment in biomanufacturing infrastructure and continue to invest in startups and innovators while incentivizing companies to locate here. I would advocate for all industry participants and admirers to be vocal with their elected leaders to continue this investment and extend our lead.
AB: Collaboration between life science companies, research institutions, and the real estate sector is vital for success. How is MassBio facilitating partnerships and collaborations between its members and real estate professionals to drive innovation and growth in the industry?
JB: Since 1985, MassBio has been the connector, convenor and catalyzer for the Commonwealth’s growing biotech industry. Under its new leadership, with Kendalle Burlin O’Connell at the helm, MassBio is doing more than ever to bring best in class programing to industry participants. Through their programing, including a series of partnering events such as their newly branded Align Summit, accelerator program MassBio Drive, issue oriented summits and social events, they continue to be the glue that holds the local ecosystem together. I would encourage people interested in collaborating with industry to check them out at MassBio.org.
AB: The COVID-19 pandemic has accelerated the adoption of telemedicine and digital health solutions. How is MassBio supporting the integration of these technologies into the healthcare ecosystem and what opportunities does this present for the industry? Can you discuss the role of MassBio in nurturing and supporting these startups, and the potential impact they can have on the life science landscape?
JB: Much of the rapid change that the life sciences industry is currently experiencing is technology driven. The growth of digital health will be the defining feature of this decade for the industry. Fast technological advancements mean that AI technologies will reach patients in no time and transform patient care as well as drug discovery and development. MassBio understands that digital health and AI will only boost health care delivery for patients with unmet medical needs and through its programing initiatives creates many opportunities for the convergence of digital health technologies with the life sciences.