USA – MASSACHUSETTS Trends and Developments Contributed by: Patti Melick, Toby Bannon, Katherine Rubino and Kelsey Loomis, Wiggin and Dana LLP
closed a USD92 million Series C and Cambridge based Atavistik Bio, which closed a USD120 million Series B round. IPO activity: Slow to start in 2025 but signs of recovery in early 2026 Despite entering 2025 with renewed optimism for a rebound in life sciences IPOs, the market struggled to build momentum. A Q4 report shows only nine bio - technology and pharma companies went public on United States exchanges, down from 19 in 2024 and 13 in 2023. One Massachusetts based life sciences company went public in 2025, Concord based Beta Bionics with an IPO size of USD235 million. ( Global Healthcare and Life Sciences IPO Activity – 2025 Review – DealForma) As IPO activity lagged, it became increasingly clear that M&A and licensing deals were emerging as the preferred exit pathways for the sector. 2026 is hinting at early signs of a rebound, with multi- ple biotechnology companies lined up to go public in the first quarter of this year. Boston and North Carolina based Aktis Oncology went public in January 2026 with a USD318 million IPO, while February has seen Spyglass Pharma and Veradermics both IPO, hinting at an uptick of IPO activity. (Why biotech IPOs are back for 2026). Conclusion These trends highlight an industry in transition moving past the volatility of recent years and toward a more disciplined, strategically focused era of innovation and investment. Dealmaking Massachusetts Trends Introduction Despite national indicators pointing toward a recov- ery of the life sciences industry, the Massachusetts life sciences ecosystem diverged, magnifying height- ened problems faced in this regional hub. By the close of 2025, challenges surrounding mass layoffs, failed drug products, funding downturns and lab space vacancies were spread across the headlines, creat- ing uncertainty and doubt for the future of the industry. Employment: Growth flattened after a decade of bustling activity Life sciences employment stalled during parts of 2025 after decades of steady growth. In the second quar-
ter of 2025, 18 Boston area life sciences companies announced layoffs, which impacted roughly 1,300 employees. By the end of the year, the total job losses were around 4,600 workers. Funding: Steady volume, lower dollars According to a 2025 Industry snapshot , the number of venture capital deals in 2025 (93 deals) was nearly identical to the number of deals in 2024 (95 deals). [14] However, total funding was off by 17% and more than half of the dollars were awarded in just the top ten deals. Similar trends were seen with the deploy- ment of federal funding in Massachusetts, as the total National Institutes of Health (NIH) funding to Massa- chusetts was down over prior years. Real estate: Lab vacancies at a record high As companies halted expansion and reduced hiring, a surplus of lab and commercial space became avail- able in downtown Boston and beyond. Around 1.1 million square feet of lab and good manufacturing practices (GMP) space became available, bringing the total inventory to roughly 63.2 million square feet. Lab vacancies in Cambridge/Kendall Square (22.9%) and Boston (38.3%) remained high, leading to a market in favour of tenants with landlords offering competitive pricing and flexible lease terms to prospective occu- pants. Bright spots in the Bay State Buried amongst these challenges, there was much to be celebrated for the Massachusetts life sciences sector. (2025 Industry Snapshot) Massachusetts is positioned to grow its manufacturing footprint as the Commonwealth’s research and development contin- ues to trend towards biologics and advanced modali- ties. Despite being home to 2% of the United States population, Massachusetts organisations received 9.3% of all NIH funding. 93 Massachusetts compa- nies completed funding rounds, with an average raise of USD34.3 million, exceeding the national average of USD29 million. Top funders included Acidea Thera- peutics, which closed a USD207.5 million Series C and Abcuro, which closed a USD200 million Series C.
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