Massachusetts biotech companies thrive during pandemic, report finds

The Massachusetts biotechnology industry appears to be thriving, despite a national stock slump and the ongoing COVID pandemic.

A report from the industry group MassBio found more than 106,000 people worked at drug companies and life science research institutions in 2021 — 13% more than the previous year. The industry continued to add jobs in research, development and manufacturing, even as some companies have laid off workers.

Massachusetts biotech workers earn an average of $201,549 per year, according to the report.

MassBio chief executive Joe Boncore said the biotech cluster — buoyed by  hundreds of millions of dollars in state investment — is now mature enough to withstand ups and downs.

“The investment government has made, that industry has made here over the past 15 years has put Massachusetts in a position where we're really able to weather the storm better than most ecosystems,” he said.

The biggest biotech and pharmaceutical employers in the state include Takeda, Sanofi, Pfizer, Novartis, Vertex, Biogen and Moderna.

Venure capital investors poured $13.7 billion into local biotech companies last year, and $5.1 billion in the first half of 2022. The largest share of research and development programs receiving venture capital funding — 36% — focused on cancer treatment.

“Due to the record amounts of venture capital money and general investment money in this industry, this industry has been able to do a lot more,” Boncore said.

He said the pandemic raised the profile of the industry by showing how quickly companies can produce life-saving vaccines and treatments.

Drug companies have come under fire for the high costs of their products. Boncore said policies that cap prescription drug prices could stifle innovation and hurt local biotech companies.

But so far, according to MassBio’s own numbers, public policies targeting drug costs don’t appear to be slowing growth of the industry.