During the last several decades Boston has become a biotech Mecca, with its Kendall Square attracting more than 120 biotech companies, both large and small. It is called the most innovative square mile on the planet. This June BIO will bring over 15,000 biotech leaders to Boston for its 2023 BIO International Convention. Speakers including award-winning journalist and health advocate, Katie Couric, will talk about how they will “Stand up for Science”—the Convention’s theme. MassBIO CEO, Kendalle Burlin O’Connell joins host, Rachel King in a wide-ranging discussion about how Boston became the largest biotech hub in the world.
During the last several decades Boston has become a biotech Mecca, with its Kendall Square attracting more than 120 biotech companies, both large and small. It is called the most innovative square mile on the planet. This June BIO will bring over 15,000 biotech leaders to Boston for its 2023 BIO International Convention. Speakers including award-winning journalist and health advocate, Katie Couric, will talk about how they will “Stand up for Science”—the Convention’s theme. MassBIO CEO, Kendalle Burlin O’Connell joins host, Rachel King in a wide-ranging discussion about how Boston became the largest biotech hub in the world.
Speaker (00:05):
In the Boston area, biotechnology literally takes center stage. And you don't have to look far to see why. That's because the region is home to the biotechnology capital of the world, Kendall Square in Cambridge, Massachusetts.
Rachel King (00:25):
Welcome to this special edition of I am BIO. I'm your host, Rachel King. As we've talked about before on the show, advances in biotechnology to solve the world's most pressing problems are both exciting and daunting. While it can take years to bring a product to market, technology continues to march on at a breakneck pace. Each year, the Biotechnology Innovation organization harnesses this energy by convening over 15,000 biotechnology and pharma leaders to discover new opportunities and promising partnerships. This year, our theme is Stand Up For Science, and we're holding the event in what some call the biotechnology capital of the world, Boston, Massachusetts. It will be held June 5th through June 8th.
(01:13):
In a moment, I will introduce you to our guest who not only hails from Greater Boston, but has been closely involved in the explosive growth of the region's biotech ecosystem. But first, let me share a few highlights of this year's event. Our Tuesday keynote speaker will be Katie Couric, the award-winning journalist and health advocate. She and I will discuss how standing up for science and patients is at the heart of biotech. I'm really looking forward to that conversation. What some of you may not know is that the cornerstone of our event is our amazing one on one partnering system. This year, we expect to schedule more than 45,000 meetings. Yes, you heard that right. In just four days, 45,000 meetings will take place between business leaders and investors. It's where the magic happens.
(02:04):
All of that takes place while a 140 panel sessions explore scientific breakthroughs in cell and gene therapy, genome editing, clinical trial innovation, personalized medicine, artificial intelligence and digital health. It's an impressive list. Our busy program also includes the startup Stadium, where early stage companies share a quick pitch before a panel of investor judges. And new this year is the biofilm festival, where attendees can screen a series of short films that highlight bio technology's role in addressing unmet medical needs. That's only a small sample of what goes on during this intense week of networking, partnering and learning. Over the last two decades, Boston has become the world's biggest biotech hub. Here to talk about how this came to be is our guest, Kendalle Burlin O'Connell, the CEO of MassBio. Kendalle, welcome to the show.
Kendalle Burlin O'Connell (03:00):
Thank you so much for having me, Rachel, really thrilled to be here.
Rachel King (03:03):
So can you start by explaining briefly to our listeners what MassBio does?
Kendalle Burlin O'Connell (03:08):
Absolutely. so MassBio was actually the first biotechnology trade organization in the world. We represent over 1,600 member companies. And our mission is to advance Massachusetts' leadership in the life sciences, grow the industry, bring value to the healthcare system, and improve patient lives.
Rachel King (03:27):
Greater Boston is now the largest biotech hub in the world with nearly a 1,000 biotech companies, more than a 100,000 employees in the industry, and both NIH and venture capital funding pouring in. How did Boston and Cambridge achieve this lofty position?
Kendalle Burlin O'Connell (03:42):
So if I take you all the way back to 1977, right here in Cambridge, the Cambridge City Council passed legislation allowing for the research of recombinant DNA. And, and it was the first city to do this, and that was really the, the spark that the industry needed to build the foundation that we have here. So then Biogen was founded in 1978. And then Genzyme was founded in 1981. And then along came MassBio founded in 1985. And that was really the start of what is now called the most innovative square mile on the planet. Of course, we have our premier academic institutions, Harvard, MIT, there's actually over a hundred academic institutions in the Commonwealth of Massachusetts, but right in this area of Kendall Square, they're located here. And because of that density, we've been able to recruit 18 of the top 20 biopharma to have a physical presence here.
Rachel King (04:36):
Well, growth like this doesn't happen only because of a robust entrepreneurial ecosystem or a high concentration of very smart people in world leading institutions. You mentioned a bit about the role of the Cambridge City Council, but can you say more about how government has played a role through public private partnerships?
Kendalle Burlin O'Connell (04:52):
Absolutely. And it's something that I love talking about, and I think it's a model that other clusters can really look to replicate because it is what has built this successful foundation here and back in 2007, Division with our partners in government for how to become a powerhouse in life sciences really started. And this has been a bipartisan effort, which I think is really interesting as well. But under Governor Romney, he had this vision to create the Massachusetts Life Sciences Center, which is a quasi-government agency, and they are our partner in all things that we do in regard to promoting life sciences. And then in 2008, under Governor Deval Patrick, we had what was called the Massachusetts Life Science Initiative.
(05:34):
And this was a 10-year billion dollar investment into the life science industry here in Massachusetts. And then in 2018 under Governor Charlie Baker, we had, uh, Life Science Initiative, uh, 2.0, so a reauthorization for another $647 million. And Rachel, right now, we are poised for a third iteration under the Governor Healey's administration. And what this did was really put the flag in the sand and send the message nationally and internationally, that Massachusetts was deeply committed to the life sciences industry. And all of the foundation that we've seen since then was started through this initiative. Employment from the inception of the Life Science Initiative to now has grown by a 131%. And our new administration has messaged very clearly to the Commonwealth and our community that they are deeply committed to not only maintaining Massachusetts' leadership in the life sciences, but extending our lead.
Rachel King (06:32):
Growing this industry here certainly makes Boston the envy of many cities, but how do you maintain this leadership position?
Kendalle Burlin O'Connell (06:38):
Yeah, when we think about the future, and how do we maintain this leadership position, I think there's a few areas that we have to really be investing in and considering. Obviously, we know that recruitment and retention has long been a challenge in the life sciences here in the Commonwealth of Massachusetts. So ensuring that we have a robust workforce is critically important. I think just as important as ensuring we have a robust workforce is ensuring that we also have a diverse workforce. Actually, in January of 2024, we will be opening up a new workforce training center called Bioversity in Dorchester, our objective here is to create career pipelines through these short term certificate programs.
(07:19):
We've built this in partnership with industry, and we think that through just this one location, we can more than double output from existing certificate and community college programs here in the Commonwealth. Also, our administration is deeply committed to this. Uh, both the House and the Healey administration's budget proposals include Life Science sector workforce development. So this is an initiative we're working on, on a state level, but also a city level, Mayor Woo, who's the mayor of the city of Boston has made a commitment to pathwaying a 1,000 residents from the city of Boston into life science jobs by 2025. And MassBio is thrilled to be a partner on this.
(07:56):
When we think about other areas that are important to consider, I think Massachusetts is a tough place to work, the cost of living is expensive here, the cost of doing business is expensive here, when you think about things like housing, we have a real lack of affordable and available housing, we have a very fractured transportation infrastructure, cost of childcare is expensive. So these are all issues that our industry through MassBio has to have a voice in. And we need to continue to work collaboratively with our partners in government to solve these challenges if we will continue to be successful in recruiting companies and employees to come here to Massachusetts,.
(08:38):
And then on a federal level, and this is something that I know BIO has done an incredible amount of work on, but when you think about the impacts of things like the Inflation Reduction Act, Massachusetts will certainly have an outsized impact, uh, in this legislation, because of what we talked about, a density of emerging biotech companies, right? Most of these companies have no revenue, no approved drugs and less than 50 employees, but they are responsible for a huge amount of new drug innovation. And when we have legislation that will potentially stifle our company's ability to innovate new and novel therapies, this is something that will have again, very, very outsized impact here in Massachusetts, and unfortunately, ultimately, our patient population.
Rachel King (09:22):
Well, thank you, Kendalle. I know those are some exciting initiatives in Boston and in Massachusetts, and we're certainly aligned with MassBio in terms of the federal policy initiatives, uh, as well. So let's talk a little bit about BIO 2023, that, given that this is a national and international conference, what can attendees expect from the Massachusetts' State of Possible Pavilion and the host city, and what are you most looking forward to personally at the conference?
Kendalle Burlin O'Connell (09:46):
Rachel, I mentioned this early on, we are so thrilled to have the BIO International Convention back here in Boston. Last time it was here it was in 2018, as you mentioned, and I think we had record breaking attendance, so we have a lot to live up to. But when you think about the Massachusetts' Pavilion, you know, we call it the State of Possible, and that's because we deeply believe that here in Massachusetts, we turn possibilities into realities. So when we think about what will be happening in our Pavilion, obviously workforce and the future of workforce will be a big part of the conversation. We're thrilled to have so many international delegations coming to Boston this year. So thinking about showcasing what the Massachusetts' Life Science ecosystem looks like on a global stage will be a huge focus of our Pavilion.
(10:39):
You know, we do something called Possible Talks, and that's where we cover a wide range of topics, including the future of bio manufacturing here in Massachusetts, how we can continue to expand and become a real world leader as it relates to bio manufacturing. And then we also try to make sure that we're integrating our partners in government, they plays such a crucial role in the success of this industry. So for sure, we will have our partners from the administration, our partners from the legislature playing a big role in the Pavilion. And then lastly, this is a really fun piece, we love to do something for our community here in Massachusetts. So we'll be hosting a concert, a big night live on the Tuesday of the week of BIO and The Chainsmokers will be performing. So really excited about that.
Rachel King (11:25):
As you mentioned, the last time that BIO Convention was in Boston was five years ago in 2018. So what would you say has changed most about the local ecosystem since then?
Kendalle Burlin O'Connell (11:35):
You know, it's really incredible to think about how much this ecosystem has grown in just such a short period of time, since 2018, for instance. So at the time, we had about 29 million square feet of lab and manufacturing development here in Massachusetts, and we've nearly doubled that number. So we now have 56 million square feet of lab and manufacturing here in Massachusetts today. When you think about the employment growth that we've seen, just in that time period, in 2018, we employed about 74,000 individuals in the biopharma space in Massachusetts, and now we employ more than 112,000 here in Massachusetts. The average wage has gone up, the average wage right now in the biopharma industry is about $200,000 here in Massachusetts, and that's increased by about 40,000 in that time period.
(12:24):
When you think about NIH funding, which is so important to our innovative early stage ecosystem here, those dollars have gone up to... So we were at about 2.9 billion in 2018, and we're now at 3.2 billion in 2022. And then, of course, venture funding has increased almost doubled during that timeframe. So we were just shy of 5 billion in 2018. And we're just shy of 9 billion last year, which is incredibly important, again, to sustain our emerging biotech ecosystem here. And lastly, what we've seen, and I know a lot of folks, when they think about the life science ecosystem in Massachusetts, they think about Cambridge, but we're really seeing this industry regionalized all around the Commonwealth.
Rachel King (13:08):
It's really an incredible story. And, uh, and thank you for sharing it. Um, I wanted to ask you one final question before we leave, and that is, ho- how would you say a successful life sciences hub in Massachusetts supports the United States' positioned as a leader in innovation?
Kendalle Burlin O'Connell (13:22):
You know, we know that Massachusetts plays a huge role in the innovation that's happening here in the United States, about 57% of new drug development happens in the United States. And because of the density of biotech companies and universities that we have here, Massachusetts understand that we play a huge role in this. We actually make up about 15% of the US drug development pipeline, and 7% of the global drug development pipeline. So when you think about the amount of patients that these Massachusetts companies are touching globally, it's incredible to think about, I think it's really, really important that we continue to invest in, protect and foster our life science ecosystem here. But I also think it's really important that we share best practices and insights into how other clusters around the country in the world can create similar ecosystems to what we have here in Massachusetts, because at the end of the day, we really don't care where science is happening. What we're about is accelerating science, so patients around the world can get access to these incredible therapies and solutions that are being researched, whether it's here in Massachusetts or anywhere. And to have the density of ecosystem that we have, it really is important that we unlock this for science is happening all around the globe.
Rachel King (14:40):
Well, this has been a great conversation, Kendalle, thank you. We're so grateful for the work that you and your organization do to sustain the groundbreaking science that delivers treatments and cures to patients around the world. And we're thrilled to be hosting our event in Boston, a thriving innovation hub. We invite our listeners to join us, register at bio.org/events. I am BIO will be taking a hiatus while we prepare for the upcoming BIO International Convention, but we'll be back in the fall. While we're away, we'll be replaying our past seasons so you can catch up on any episodes you may have missed. Make sure to subscribe, rate and/or review this podcast and follow us on Twitter, Facebook and LinkedIn @IAmBiotech and subscribe to Good Day BIO at bio.org/goodday. This episode was developed by executive producer Theresa Brady. It was engineered and mixed by Jay Goodman with theme music created by Luke Smith and Sam Brady.