What are recent developments at PABC and what sets your incubator apart?

We are collaborating with the Blumberg Institute on a yellow fever therapeutic in partnership with the NIH, leading to the establishment of a drug development division. Our labs are operating at full capacity, and as larger companies graduate, we are filling vacancies at B+labs with early-stage companies. Another milestone is our involvement in the Biogenesis Research Park, a new campus on Long Island, NY, that would be the largest government-supported cell and gene therapy initiative in the US. This project is set to become a major biotech hub, featuring an on-site CDMO, a robust incubator, and space for company growth.

This incubator is part of our broader strategy to expand our network, with plans to establish more incubators over the next few years, strengthening connections between Pennsylvania and New York. Unlike typical incubators that push companies out after a few years, we maintain ongoing connections. Many biotech companies in our incubator reach IPOs or acquisitions in an average of 3.5 to 4 years, faster than the industry average of 8.5 years.

How have recent biotech trends affected operations?

The surge in VC investment from 2021 has not been matched by returns, leaving many companies to focus on just one or two technologies to extend their runway. In the lab space, vacancy rates have been concerning. It is a sign of less abundant VC funding. There is optimism that by mid to late 2025, things will pick up.

What role do incubators play in the industry?

Incubators are crucial in supporting biotech companies, especially during slower phases. We provide nonprofit support, programming services and assistance in securing funding through a network of venture capitalists, angel investors and state funds. Most venture capital is directed towards larger, more established biotech firms, leaving early-stage companies struggling to secure investment. While the science has always been present, the investment has not followed due to concerns about scaling labs and interest rates. There needs to be more investment from venture capitalists or targeted state funding to support smaller companies.

What projects at your center show promise in biotechnology?

Our scientists are developing what could become the world’s first yellow fever therapeutic. Hepatitis B remains our primary mission, and we are determined to find a cure. There is promising news from local biotech companies like Arbutus, which we have supported from its early days, and Virion Therapeutics, a company developing new treatments using CRISPR technology. Even though big pharma companies are scaling back their investments in hepatitis B after the success with hepatitis C, smaller companies and our research continue to push forward.

How do you see Philadelphia’s biotech future and the evolution of technology?

The Philadelphia region, and Pennsylvania, are at a crossroads in biotechnology, transitioning from small molecule drug development to advanced cell and gene therapies. At our Doylestown facility, we focus on small molecules, while our Philadelphia labs are deeply involved in CAR-T therapies and CRISPR-based gene editing. AI has become a game-changer in biotechnology. We launched an AI company which helps those unable to afford the large AI contracts that big pharma can access.

How can Pennsylvania enhance its biotech profile?

Improving infrastructure and fostering collaboration between academia, pharmaceutical companies, governments and incubators is essential. States like Texas and Massachusetts have heavily invested in life sciences, and Pennsylvania has the potential to follow suit under its new governor, who prioritizes the sector. Investments in infrastructure should reduce lab vacancy rates and create growth opportunities. With greater infrastructure investment, Pennsylvania could become a top-three state in the field. Pennsylvania’s strong academic institutions and research organizations position it to lead in biotech. Better alignment between institutions and industry can drive innovation, scientific progress, and economic growth in the coming years.

What are PABC’s growth plans?

We are expanding beyond Pennsylvania into biotech hubs like California, New York and New Jersey to foster collaboration, strengthen our brand, and support hepatitis B research. Partnerships with institutions such as UCLA, Caltech, USC, Rockefeller, and NYU drive innovation. Our academic foundation sets us apart, with programs for high school, masters and fellowship students engaging 100 students each summer in Doylestown and expanding in Philadelphia.