Key Findings

• NIH cuts undermine research engine: Every $1 million in NIH funding supports over eight jobs and played a role in the development of 99% of drugs approved between 2010 and 2019. More than 20 million patients are treated annually with medicines developed with the support of NIH funding. Recent cuts jeopardize both early-stage research and downstream clinical capacity.
• FDA reductions delay innovation and increase costs: Workforce cuts have already lengthened review times, increased regulatory costs, and disproportionately impacted next-generation therapies, threatening to cede US leadership in innovation. Half of survey respondents report being negatively impacted by FDA reductions, and two-thirds are highly concerned about future drug delays.
• Trade barriers disrupt supply chains: With more than 70% of active pharmaceutical ingredients imported, new tariffs threaten to drive up hospital costs by 15% and delay product launches. Half of all biotechs would need to delay regulatory filings to find new partners, and the cost of generics is projected to rise by nearly 20%.
• Capital retreat strangles innovation: When policy or macroeconomic turbulence, such as funding cuts, regulatory uncertainty, or trade disruptions, increases perceived risk, venture capital quickly reallocates to less volatile arenas with shorter exits and clearer cash flow prospects. These headwinds are causing VCs to flee the sector, with early-stage deal values hitting a four-year low.
• Rising global competition: Asia now leads in biotech patent filings and IPOs, thanks in large part to China, a signal that the innovation frontier may be shifting abroad if U.S. policy fails to respond.

What We’re Saying

“Biotech is not just an industry—it’s a cornerstone of our state and national strength. This analysis makes clear that without policy stability and renewed investment, we will cede leadership in a sector that defines the future of medicine, creates high-wage jobs, and safeguards our economic and national security. MassBio is committed to supporting our members as they navigate this uncertainty and working with policymakers across the political spectrum to protect American innovation.” – MassBio CEO and President Kendalle Burlin O’Connell