MassBio released its annual report highlighting a significant downturn in Massachusetts’ biotech sector, revealing a 17% decline in venture capital investment to $2.75 billion for H1 2025—the lowest since 2017. NIH funding is projected to drop by approximately $463 million this year amid shifting federal policies. These financial headwinds have forced retrenchment in academic labs and industry, casting uncertainty on the local life sciences ecosystem.<BR><BR>MassBio CEO Kendalle Burlin O’Connell described the environment as challenging but unsurprising, citing instability and unpredictability after a post-pandemic market correction. This funding contraction stalls the region’s historic momentum in biotech innovation and commercialization.