Federal cuts and uncertainty threaten Maryland's biotech industry
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Montgomery County, Maryland, is home to the National Institutes of Health and the Food and Drug Administration. The county has spent years leveraging its proximity to these agencies to grow its biotech sector, investing in job creation. But federal cuts and uncertainty now threaten the industry, even as the state fights to secure it. Jenny Abamu from member station WAMU has this story.
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JENNY ABAMU, BYLINE: Scientists, investors and biotech executives gathered in North Bethesda for the Maryland Tech Council's annual Bio Innovation Conference. This year, the mood was somber and conversation was more likely to be about survival than breakthroughs and funding rounds. The FDA and NIH have attempted to cut billions in grant funding nationwide and at least 5,000 positions, according to the state.
Dr. Ankita Garg is a medical microbiologist and immunologist who works on infectious and chronic diseases. She was on probation when the federal government laid her off as part of the DOGE cuts earlier this year.
ANKITA GARG: I'm kind of going through from working for organizations to having my own organization - towards that. But having said that, I'm also open to being hired by someone else.
ABAMU: County leaders want to keep highly skilled residents like Garg. They need the talent to compete with biotech hubs like Boston, the Bay Area and Research Triangle Park in North Carolina. In the past, they created tax credits for biotech investors and poured $40 million into the Institute for Health Computing, a research and talent development center at the University of Maryland.
Kelly Schulz is the CEO of the Maryland Tech Council. Her organization is trying to connect former federal workers with biotechnology positions and training to better meet industry needs.
KELLY SCHULZ: I think right now, we have to look at that industry as a place to retain what we have as opposed to the understanding of maybe, you know, large expansions or attractions of new companies in the area.
ABAMU: Montgomery County officials say the impetus to diversify the local economy away from federal reliance is stronger now. Maryland has also stepped in, last week announcing that it's secured a massive $2 billion investment from AstraZeneca to create 2,600 jobs by 2029. But this isn't all for free. Governor Wes Moore said the state is contributing about $117 million over eight years to support the project.
WES MOORE: There's no reason for the global head of life sciences not to be in the state of Maryland.
ABAMU: But offsetting billions in cuts to federal agencies like NIH is a feat beyond any local or state government, and the reality is uncertain. Industry experts estimate venture capital investment in the region has dropped by more than 50% this year. Jeff Galvin is founder and CEO of American Gene Technologies in Montgomery County. He's spent nearly a decade and tens of millions of dollars developing a functional cure for HIV. It could ultimately be worth billions, but it's challenging to raise the 35 million for the next phase of research. Galvin says the shuttering of USAID was a major blow to investor confidence. USAID provided funding for HIV prevention and treatment.
JEFF GALVIN: A lot of the risk in it is whether the project can continue under economic conditions that exist in the United States today. And that's what investors need to figure in when they're making decisions.
ABAMU: Maryland is still banking on Montgomery County's biotech industry to expand the tax base and help the state turn around a growing budget deficit.
For NPR News, I'm Jenny Abamu in Bethesda.
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