Five Drivers Behind Philadelphia’s Fast Rise in Life Sciences

By Jeff DeVuono

Research breakthroughs. A robust ecosystem. A growing infrastructure. Why momentum is growing in the City of Brotherly Love.

There have been many steps in Philadelphia’s rise to become one of the top five most vibrant life sciences city in the country, but one of the most crucial came in 2017.

That was the year the U.S. Food and Drug Administration made an historic announcement: for the first time ever, it approved a gene therapy treatment for widespread use. The treatment, Kymriah, targets an acute form of leukemia, and the FDA wasn’t shy about highlighting what a big deal it was.

The FDA approval was, most significantly, encouraging news for patients. But it was also a victory for the researchers at the University of Pennsylvania and Children’s Hospital of Philadelphia who’d pioneered Kymriah, as well as the broader life sciences ecosystem in Philadelphia.

After five years and an extraordinary string of research breakthroughs and FDA approvals, Philadelphia has become, according to the economic research firm ESI, one of the top three cell and gene therapy hubs in the country.

How did it happen? And why are a growing number of researchers, founders, funders and established life sciences companies considering Philadelphia a crucial place to be? Here are five reasons for Philly’s fast rise.

# 1. A legacy of innovation

Philadelphia has long been a city of firsts, from being the home of America’s first hospital and the birthplace of the first computer to its instrumental role in the founding of the United States.

The palpable progress in the city continues today in gene and cell therapy. Following Kymriah, the FDA has in recent years approved an array of breakthroughs pioneered in Philadelphia, including mRNA vaccines for COVID-19 as well as game-changing gene therapies to treat several rare diseases, including a genetic form of childhood blindness. That latter approval went to startup Spark Therapeutics, which has quickly become the city’s biggest life sciences success story. Spark, which was acquired for $4.8B in 2019, already occupies office and lab facilities in Schuylkill Yards, a mixed-use neighborhood being developed by Drexel University and Brandywine Realty Trust, and the company will soon break ground on a $575 million, 500,000-square-foot gene therapy innovation center in University City. The center will eventually be home to hundreds of gene therapy manufacturing jobs.

# 2. Big momentum—and big money

The string of scientific breakthroughs coming out of Philadelphia has led, not surprisingly, to big leaps forward in commercialization and funding, creating a virtuous circle of success and momentum.

According to the Greater Philadelphia Chamber of Commerce, the number of gene and cell therapy companies in the region now tops 45, up from 30 just three years ago. Meanwhile, the region set records for funding in both 2020 and 2021, with more than $12 billion invested in life sciences in Philadelphia last year. Of that investment, $3.2 billion focused on gene and cell therapy.

It’s a sign that, more than ever, Philadelphia is attracting talent and ambition, with even more talent and ambition coming down the pike.

# 3. A vibrant ecosystem

Supporting Philadelphia’s current rise—and its future success—is an already strong life sciences ecosystem centered around a group of vital institutions. On the research front, the city is home to the University of Pennsylvania and Children’s Hospital of Pennsylvania, as well as Drexel University, Thomas Jefferson University and Temple University. All told, the Philadelphia region attracts more than $3 billion per year in funding from the National Institutes of Health (NIH); Penn is continually among the country’s top recipients of NIH dollars, pulling in $546 million in 2021.

Enriching the ecosystem even more are the bevy of biotech startups, as well as the presence of the broader pharmaceutical industry; 80 percent of all drug companies in the U.S. have offices in Greater Philadelphia. Finally, there’s the region’s workforce, which includes nearly 750,000 science and engineering degree holders, as well as the fifth-largest student population in the U.S.

These factors are likely why companies like fast-growing Spark have made the decision to headquarter themselves in Philadelphia. It’s an environment that allows for easy interaction and serendipitous connection, out of which has flowed important advances.

To learn fourth and fifth drivers behind Philadelphia’s rise in life sciences, visit this full article on our blog.