Economic Forecast: Biotech will grow

Photo | Courtesy of Galaxy Life Sciences A rendering of the planned Galaxy Life Sciences building slated for The Reactory

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By Grant Welker

The Central Massachusetts biotechnology industry was a rare bright spot in 2020. Three communities benefited in notable ways. Worcester saw construction start on a $60-million life sciences building from China-based WuXi Biologics and speculative construction on a similar $50-million facility nearby from Webster developer Galaxy Life Sciences. Devens had the purchase of three sites by Boston developer King Street Properties, which plans to invest $500 million on biomanufacting buildings. Vibalogics, a German contract development and manufacturing organization, said in November it’ll spend $150 million on a virotherapy manufacturing center in Boxborough. Those deals give the region momentum going into the new year.

Finding a critical mass

WuXi Biologics and Galaxy Life Sciences are the two first tenants of The Reactory, a 46-acre site on much of the former Worcester State Hospital envisioned for 470,000 square feet on nine development sites, complementing pharmaceutical company AbbVie, the UMass Medical School and the UMass Medicine Science Park. WuXi and Galaxy, which hasn’t yet announced a tenant finalized, will go a long way in helping to establish Worcester as an option more life science companies will consider when looking to start or grow their presence near Boston. WuXi got generous state and city subsidies, but the site should already work financially for companies looking for a cheaper option than anywhere inside I-128.

Taking advantage of a workplace shift

The coronavirus pandemic has already been said to be a boon to the life sciences industry, and this region in particular. JLL, a national real estate and investment management firm with local offices in Boston, said in August the Boston area will benefit more than any region in the country from what's expected to be a quickening pace of growth for the life sciences industry in the wake of the pandemic. That growth comes from both a demand for advances in health technology and treatments as well as life science firms' push toward the suburbs, where they can spread out more safely with lab space. It’s up to Central Massachusetts communities to show companies why they’re as good – or better – of an option than Boston, Cambridge or Waltham, never mind all the other communities working to add themselves to the map as well.

Hatching a new company

Worcester has plenty of startups looking to eventually make it big in life sciences, including at incubators like Massachusetts Biomedical Initiatives. Some are closer to market than others. Eventually, city and local industry leaders hope one of these companies will make it big. No one’s exactly expecting the next Moderna, but a well-known startup could help plant a flag for Worcester that talent and investment capital can make it big here. The next step? Keeping that company around to help grow the talent pool.