The Massachusetts biopharma industry is coming off a year of growth in 2010, despite the economic climate, and is well-positioned for growth in 2011.

The industry now employs more than 46,000 people in Massachusetts, an increase of 60 percent since 2000. Of the top biopharma manufacturing states, Massachusetts is one of just four states which added manufacturing jobs in the last decade. Massachusetts continues to hold a dominant position globally in industry concentration in biotechnology research and development.

In the past year, we have seen the formation of dozens of new, small biotechnology companies across the commonwealth. At the same time, larger biopharma companies are increasing their investment here. Novartis Institutes for BioMedical Research announced they will invest $600 million to expand in Cambridge, creating 300 new jobs. Sanofi-Aventis has chosen Massachusetts as its oncology research headquarters, committing to a $65-million expansion and 300 new jobs. And Billerica-based Millipore was acquired by Merck KGaA, which announced it will bring its chemical division headquarters to Massachusetts from Pennsylvania as part of the acquisition.

We have also positioned Massachusetts municipalities as ready and willing to work with biopharma companies looking to relocate or expand. To date, 63 communities are BioReady-rated, having met criteria for zoning and permitting processes friendly to the industry.

Collectively, 78 Massachusetts biopharmas received more than $1 billion in venture capital financing in 2010.  In addition, several more mature companies are at critical stages of clinical development of potential products, with one or two close to becoming major biotechnology players.

On top of that, established Massachusetts biotech companies will likely continue to be targets for acquisitions by larger biopharmaceutical companies. 

In summary, the biopharma business ladder, with early stage companies through teenage companies progressing to higher positions, may be well-climbed in 2011. Such activity would complement the plans of major laboratory developers to build new facilities and potentially reward communities that have worked to position themselves for such facility opportunities.

BioPharma Predictions

In 2011:

• Investments by traditional pharmaceutical companies in Massachusetts biotechs will continue, accompanied by some outright acquisitions.
• Several early-stage companies are likely to emerge as more visible “teenage” companies.
• Depending on positive reports on clinical trials and FDA actions on approvals, one or two Massachusetts companies may break out as major players in the industry.
• Overall industry growth will push laboratory development “up” in Cambridge and “out” through the inner and outer suburbs.

It’s all leading up to 2012, when Massachusetts will again host the international BIO convention. Thousands of industry players will converge on Boston at the premier biotechnology conference and trade show, providing all industry stakeholders an opportunity to showcase our strengths and opportunities. It’s a compelling story and we’re excited to tell it.

The stage is set for 2011 to be a year of growth and expansion in biotechnology, and Massachusetts is well-positioned to benefit.

Robert K. Coughlin is president & chief executive officer of the Massachusetts Biotechnology Council, www.massbio.org.