Dear Members,
Celebrating the Season of Innovation 🎉
As we enter the holiday season, there’s no better time to reflect on the remarkable spirit of innovation and collaboration that defines our Virginia Bio community. This season of giving and growth mirrors the drive and passion each of you brings to advancing biotechnology in our state. Thank you for your dedication, breakthroughs, and tireless efforts, which have fueled a year of extraordinary progress. Whether through groundbreaking research, fostering partnerships, or advocating for our industry, your contributions have made a lasting impact on Virginia’s thriving biotech ecosystem. Looking ahead, the new year promises even greater opportunities. Together, we’ll continue to build momentum, champion innovation, and solidify Virginia’s place as a national leader in biotechnology. Here’s to a joyous holiday and a prosperous, discovery-filled 2024!
Virginia’s Biotech Economy: Growth, Investment and Recognition in 2024
Virginia’s $8.4 billion biotechnology sector continues to shine as a national leader in innovation and economic growth. According to the recently published biannual TEConomy/BIO report, our state’s biotech ecosystem is thriving, with over 30,504 jobs supported by the life sciences industry (up from 28,135) and 3,433 establishments (up from 2696) driving advancements in diagnostics, pharmaceuticals, medical devices, and bio-agriculture. Additionally, Virginia institutions attracted $866 million in NIH funding (a 35% increase since 2019), and bioscience-related academic R&D expenditures totaled nearly $1.1 billion. And although we experienced a notable decrease in venture funding mirroring a national trend, Virginia still benefited from $487 million in venture capital investments, fueling innovation.
Some tangible examples of growth: The Alliance for Building Better Medicine, headquartered in Central Virginia, is a prime example of this growth in action. The initiative, backed by public and private partnerships, aims to establish a regional hub for advanced pharmaceutical manufacturing, fostering economic development and ensuring a resilient U.S. drug supply chain. This year saw Alliance member Phlow Corporation marking a major milestone by commencing manufacturing production, reinforcing the state’s commitment to reshoring essential medicine production. And CivicaRX is steps closer to having its new headquarters, manufacturing and research facilities all operational, positioning Virginia as a key U.S. domestic drug manufacturing hub. Also, American Type Culture Collection (ATCC)’s $54.6 million investment to expand its Prince William County footprint will create 75 new jobs, expanding its role as the world’s leading supplier of essential biological material. Additionally, Virginia Beach’s LifeNet Health acquired a 5,700 sq ft laboratory from the City of Virginia Beach that will serve as the center of excellence for groundbreaking liver disease research & sports medicine applications.
And even in a challenging investment climate, private-sector investments and partnerships continued in Virginia. Arlington Capital Partners announced its strategic investment in Afton Scientific, setting the stage for expanded sterile drug manufacturing capabilities in Charlottesville. AgroSpheres’ $37 million Series B, combined with a collaboration with BASF underscores the strength of Virginia’s ag-bioscience sector, with cutting-edge international partnerships aimed at revolutionizing crop protection and sustainability. And Series rounds closed by TearSolutions, PAK Biosolutions and major Nanochon seed round, as well as AbbVie’s acquisition of Landos Pharma ($210 million), evince the continued attractiveness of Virginia innovation to investors.
Recognition for Virginia’s leadership extends beyond industry. Governor Glenn Youngkin was named the 2024 BIO Governor of the Year by the Biotechnology Innovation Organization—an honor that reflects our state’s commitment to fostering a pro-innovation business environment. This award not only celebrates policy achievements but also highlights Virginia as a magnet for biotech talent and investment. Also, in 2024 the BioHealth Capital Region (a cluster including Virginia, Maryland and Washington, D.C.) retained the #3 spot in Genetic Engineering & Biotechnology News’s Top U.S. Biopharma Clusters, just behind Boston and San Francisco.
Virginia’s bioscience economy is more than just numbers—it’s a testament to what’s possible when innovation, investment, and community come together. Let’s keep building.
🏛 Building Bridges: Government Relations Update
The upcoming 2025 General Assembly session promises to be pivotal for our industry. Two critical topics on the agenda—Prescription Drug Affordability Boards (PDAB) and 340B drug pricing program reforms—deserve your attention. Thank you to all of our partners, the PhRMA Task Force, our government relations team at Hancock, Daniel & Johnson for helping us achieve positive outcomes on these two issues during General Assembly 2024; they are sure to return in force next year. A PDAB’s artificial price setting regime would directly impact pharmaceutical manufacturing and innovation, discouraging investment and causing manufacturers to avoid Virginia as a destination for operations. Changes to the 340B program may reshape how discounts and benefits are distributed across the healthcare ecosystem and, if not done right, failing to increase access to those in need. These decisions will influence the future of biotech in Virginia, making it crucial for our community to stay informed and engaged.
On the national stage, mark your calendars for two key Capitol Hill Fly-Ins, where Virginia’s biotech leaders will join forces to advocate for our sector during Congressional delegation visits: AdvaMed Fly-In, February 25, 2025; and the Biotechnology Innovation Organization (BIO) Fly-In, April 1, 2025. Hot topics will include (and remain from 2024) the Tax Cuts and Jobs Act provisions regarding R&D expense amortization, the TRIPS waiver for COVID-19 therapies and the continued expansion of drug price negotiations under the Inflation Reduction Act. These fly-ins offer an invaluable opportunity for members to engage with policymakers, advocate for industry priorities, and forge connections that can shape the future of biotechnology. By participating in advocacy efforts, you help strengthen our collective influence on critical legislation and policies. Stay tuned for updates as we approach these critical dates—and let’s make our voices heard!
Upcoming Events: Mark Your Calendars! 🗓
🌟 JP Morgan Healthcare Conference + State BioFriends Reception. The 2025 JP Morgan Healthcare Conference is set to take place on January 13-16 in San Francisco, a hub for biotech innovation. This global event provides unparalleled networking opportunities and insights from industry leaders shaping the future of healthcare. Don’t miss the State BioFriends Reception on January 12 at the Marker Hotel-San Francisco—a casual yet impactful gathering of ~600 people to connect with colleagues and expand your professional circle. Please reach out to Frank Wilton if you need a seat!
🌱 AgBio 2025. Taking place on April 8-9, AgBio 2025 will be co-hosted by Virginia Bio the North Carolina Life Sciences Organization at the Biotech Center in Raleigh. Spotlighting advancements at the intersection of biotechnology and agriculture, Expect thought-provoking sessions and opportunities to collaborate with leaders driving agricultural innovation. For more details and registration, visit AgBio 2025 Event Page.
🌐 BIO International 2025 – Boston. The BIO International Convention returns to Boston in June 2025, promising an agenda packed with groundbreaking research, cutting-edge technologies, and global industry leaders. Members are strongly encouraged to explore the Virginia Economic Development Partnership’s STEP Program, which provides up to $6,000 in funding to support small business travel and participation. Stay tuned for speaker announcements and a full agenda.
💡 Women Building Bio 2025. In September 2025 we will celebrate our 10th annual Women Building Bio Conference, showcasing the contributions of women leaders in biotechnology while tackling the most pressing industry challenges. This vibrant event cultivates meaningful discussions, mentorship opportunities, and the empowerment of women leaders. Stay tuned for more info on our Women Building Bio page.
☕ Virtual Coffees – Networking From Anywhere! In 2025, VaBio will launch quarterly Virtual Coffees with me, offering members up-to-date insights regarding our ecosystem and an informal space to connect, share insights, and foster collaboration. These 30-minute sessions are perfect for those seeking to stay informed and build lasting professional relationships—all from the comfort of your desk. Details on dates and registration are coming soon!
Let’s make 2025 the Best Yet for Virginia!
Thank you all so much for your support of Virginia Bio. Every time you reach out to fellow members, participate in our programs, inform us of your success stories and advocate for our ecosystem, you help make us stronger. Please feel free to reach out to us anytime; we are here for you. See you next year.
John, Caron and Frank