Q1 2026 Newsletter
President’s Message
As we turn the page on Q1 2026, Life Sciences PA (LSPA) is seeing, hearing and feeling continued positive energy that emanated from meeting rooms, hotel lobbies and restaurants during the JPMorgan Healthcare Conference in January. I have heard countless times the comparison to the entry into Q1 2025 as having been “cautiously optimistic” to a new “genuine optimism” ushering-in 2026. And there are signs and reasons for this more definitive positive outlook. More stable market conditions, rising M&A activity, and capital raises resembling 2021 levels illustrate the opening of financing opportunities for our emerging companies. Additionally, substantial investments by global life sciences leaders into Pennsylvania have put the global life sciences spotlight on the Commonwealth. Most notable: Eli Lilly’s investment of $3.5 billion into their manufacturing campus in Allentown; Johnson & Johnson’s $1 billion expansion in Spring House; TerraPower Isotopes’ $450 million investment into their new facility in the Bellwether District in Philadelphia; and the ongoing progress of Elevate Bio with their new facility in Pittsburgh. Each of these brings considerable economic development and job creation, while brightening the glow of Pennsylvania as a global leader in the life sciences.
On the advocacy front, LSPA was pleased to see Governor Shapiro’s 2026-2027 Budget proposal with a $100 million initiative reminiscent of a program originally launched by Governor Corbett in 2013, Innovate in PA, which was strongly supported by LSPA (PA Bio at the time) and which received bi-cameral and bi-partisan support in Harrisburg. Governor Shapiro’s “Innovate in PA 2.0 ” offers the same promise for the innovation economy and LSPA is proud once again to advocate strongly for its inclusion in the final budget. Importantly, Governor Shapiro continues to support our industry with serious policy proposals in addition to his administration’s efforts to attract the aforementioned global leaders to our great state. We hope you will join us in Harrisburg for our annual Advocacy Day, May 5 in Harrisburg. To learn more about Advocacy Day and to register, Click Here. More on our state advocacy activity below.
At the federal level in Q1, February brought full funding of the Rare Pediatric Disease Priority Review Voucher (PPRV) Program through September 30, 2029. In March, we celebrated the reauthorization of the SBIR and STTR programs through September 30, 2031. These congressional actions ended considerable lapses in programs that are top advocacy priorities for LSPA and reflect the strong bipartisan and bicameral support we enjoy from the Pennsylvania Congressional delegation. For anyone still stinging from the uncertainty created last spring around NIH funding, I had the privilege in the final days of March to spend time with NIH Director Jay Bhattacharya as he toured the life sciences ecosystems of Pittsburgh and Philadelphia, hosted by U.S. Senator Dave McCormick in visits hosted by our partners at the Pittsburgh Life Sciences Alliance and the University of Pennsylvania, respectively. The Director and Senator McCormick conveyed their clear understanding of the NIH’s role in innovation and their strong support for increasing its funding.
On the Membership front, LSPA continued strong, steady growth with 27 new members welcomed into the Association in Q1. A list of our new members can be found at the bottom of this Newsletter homepage. Please join us in welcoming them.
Finally, but no less significant, we celebrated our 2026 Annual Dinner & Showcase March 11 at the world-renowned Philadelphia Museum of Art. 600 guests enjoyed an elegant evening honoring leaders who shaped Pennsylvania’s life sciences community while recognizing successes achieved in 2025. A recap of the Annual Dinner & Showcase is also included below where you can also find information about our other Signature Events planned for 2026.
The team at Life Sciences PA hopes you agree 2026 is off to a strong and very positive start. We thank you for your continued involvement and support; it’s what makes your Association worthwhile and successful on behalf of the entire ecosystem we all enjoy.
All the best,
Christopher P. Molineaux
President & CEO
Life Sciences Pennsylvania
Advocacy
If you would like to get involved in our federal advocacy or have any questions, please contact Lara Flynn (lflynn@lifesciencespa.org) Sr. Director, Federal Policy & Public Affairs.
Rare Pediatric Disease Priority Review Voucher (PPRV) Program Reauthorization:
In early February 2026, the Rare Pediatric Disease Priority Review Voucher (PPRV) Program was fully funded through September 30, 2029. The program had lapsed in December 2024 despite strong bipartisan support, halting a vital incentive for drug developers who have historically relied on it to advance novel treatments for rare pediatric diseases.
The legislative package, which included the Mikaela Naylon Give Kids a Chance Act, restored and extended the PPRV program—a critical mechanism for stimulating the development of therapies for diseases that are often not economically viable to pursue. Its reauthorization provides long-needed certainty for innovators while delivering hope and potential lifesaving treatments to millions of families across the United States. Notably, the PPRV program achieves this at no direct cost to taxpayers.
SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) Reauthorization:
Life Sciences Pennsylvania celebrated the passage of the Small Business Innovation and Economic Security Act (S.3971) on March 3, 2026 in the Senate, followed shortly thereafter with a successful vote in the House reauthorizing the SBIR and STTR programs through September 30, 2031. This Congressional action finally ended a five-month lapse that began on September 30, 2025, which halted new awards and created uncertainty across the life sciences ecosystem.
On January 22, 2026, LSPA joined colleagues from New York, New Jersey, California and Iowa in meetings with the Senate Small Business Committee and House Small Business Committee staff to stress the urgent need for this much needed reauthorization, which restores a critical source of early-stage capital that enables startups to advance research, enter clinical development, and bring new technologies to market.
SBIR and STTR funding played a vital role in innovation and economic growth. In 2024, Pennsylvania companies received 226 awards totaling nearly $134 million. Throughout 2025, Life Sciences Pennsylvania led a statewide advocacy effort to support reauthorization and helped secure strong bipartisan support from the Pennsylvania congressional delegation.
Lara Flynn meets with Majority staff of the Senate small business committee meeting. Joined by: New York BIO, Iowa Bio, BioNJ and Biocom.
National Institutes of Health Funding Restored and Maintained:
The Give Kids a Chance legislation also provided stability for NIH-funded research by maintaining consistent funding levels. Congress made a clear decision to preserve the foundational investment necessary to advance biomedical innovation. In addition, the package includes Pharmacy Benefit Manager (PBM) reforms that prohibit PBMs from tying Medicare Part D compensation to drug list prices and increase transparency in employer contracts.
IN OTHER FEDERAL NEWS
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- Life Sciences PA was featured in a House Judiciary Committee staff briefing on life sciences mergers and acquisitions (M&A) with the Partnership for the US Life Sciences Ecosystem (PULSE Coalition) to share the real-world implications for our industry.
PULSE Congressional Briefing: “New Research on Drug Launches and Life Sciences M&A.”
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- Member Companies of LSPA based in Chester and Berks Counties had the opportunity to share their expertise with U.S. Representative Chrissy Houlahan (D-PA-06) at a Life Sciences Roundtable with the Chester County Economic Development Council.
- LSPA joined colleagues from around the Country for the annual AdvaMed State MedTech Alliance (SMTA) for meetings with the offices of Rep. Brendan (D-PA-02) Boyle, Rep. Reschenthaler (R-PA-14), Senator Dave McCormick (R-PA) and Rep. Mary Gay Scanlon (D-PA-05) to share our federal policy priorities for medical devices, diagnostics and novel technologies for the remainder of the 119th Congress. We also hosted our annual multi-state Congressional Staff Reception on March 19, 2026.
- Following President Trump’s State of the Union Address, Rep. Dan Meuser (R-PA-09) introduced the Most Favored Patient Act of 2026 (H.R.7837). This legislation would dramatically reduce innovation in Pennsylvania, and the United States, and inhibit patient access to groundbreaking therapies and cures. Life Sciences PA President and CEO Chris Molineaux expressed concerns directly with the Congressman surrounding this proposal. We will continue working with members of the Pennsylvania Congressional delegation towards solutions that preserve an environment for innovation in the U.S. while reducing costs for patients. Thank you for your attention to these matters and thank you for your understanding on these complex issues of great importance to Pennsylvania’s life sciences ecosystem.
NIH Director in Pennsylvania:
U.S. Senator Dave McCormick and NIH Director Dr. Jay Bhattacharya were in Pennsylvania to experience firsthand the strength of Pennsylvania’s life sciences innovation ecosystem, with a focus in Pittsburgh on March 30th and in Philadelphia on March 31st. Along with the Pittsburgh Life Sciences Alliance our Academic Research Institutions, LSPA President and CEO Chris Molineaux, directly shared the impact and importance of our innovation ecosystem, supported by $2.67 billion in NIH funding across more than 4,300 projects in Pennsylvania. This level of current investment across the Commonwealth represents groundbreaking research, new treatments, technologies, and therapies. Many LSPA member companies had the opportunity to showcase their NIH-supported research and meet individually with these important policymakers. Life Sciences PA supports a robust annual NIH budget and advocates to maintain our leadership position for this essential early federal investment.
U.S. Senator Dave McCormick and NIH Director Dr. Jay Bhattacharya meet with members of the media prior to hearing from LSPA Member companies.
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If you would like to get involved in our state advocacy or need more information on contacting your legislator, please contact Kurt Imhof, Senior Vice President for Policy and Public Affairs at kimhof@lifesciencespa.org.
Governor’s Budget Address
Governor Shapiro presented his proposed budget for 2026-2027 February 3 before a joint meeting of the State House and Senate. The plan calls for $53.3 billion in spending by state government, which represents a $3.2 billion increase over last year’s enacted budget. This proposal is the fourth by Governor Shapiro since taking office. The full transcript of the Governor’s budget address can be found HERE.
Life Sciences PA is thankful for the Governor’s recognition of life sciences as a key driver in Pennsylvania’s economy and is pleased to see his investment in Pennsylvania’s life sciences/innovation industry. Specifically, the Governor’s budget includes a $100 million refresh – through the sale of insurance premium tax credits – of the Innovate in PA program. This funding will be used, in part, for several life sciences priorities, such as establishing a clinical trial network in the state, and will prioritize other policies designed to incentivize investment in innovative industries.
Additionally, the budget maintains the graduated reduction of the Corporate Net Income Tax (CNIT), which stands at 7.49 percent in 2026 and is on track to reduce to 4.99 percent by 2031. It also includes an increase in $10 million to the PA First program, which the administration has utilized to attract significant life sciences investment. In line with attracting investment, the proposal includes changes to the Pennsylvania Economic Development for a Growing Economy (PA EDGE) collection of tax credit programs, one of which is for biomedical manufacturing and research. The changes would lower the thresholds necessary to utilize the program.
In alignment with our state policy priorities, Pennsylvania’s three Life Sciences Greenhouses are funded at their annual level of $1 million each, for $3 million in total, and the Research & Development and Keystone Innovation Zone Tax Credits are each fully funded. Funding for Ben Franklin Technology Partners is also maintained at $17 million.
It’s important to remember this budget address is the first step in Pennsylvania’s annual budgeting process. The Senate and House appropriations committees held hearings on the budget during which time Life Sciences PA weighed in with the appropriate legislators to ensure they understand the importance of investing in the Commonwealth’s life sciences ecosystem. Specifically, Life Sciences PA sent a letter to House and Senate Appropriations Committee members outlining our budget priorities.
Senate AI Hearing
The Pennsylvania Senate Committee on Communications and Technology, and the Senate Committee on Institutional Sustainability and Innovation held a joint hearing Thursday, January 22, on the overlap between Pennsylvania’s life sciences ecosystem and its leadership in artificial intelligence. The hearing was focused on better understanding the unique dynamic between these two industries, and how Pennsylvania can continue to incentivize their growth and development.
Life Sciences PA was proud to participate in this hearing, hosted by member company Merck, and was honored to be joined by many member organizations. Members participating included Carnegie Mellon University, University of Pennsylvania, EveryCure, OK2StandUp, Cogwear, Johnson & Johnson, and AltaSciences.
The discussion provided a comprehensive overview of how AI can support more efficient drug development, bolster the utilization of novel medical technologies, and ensure the safety of patient data, all while driving economic growth in the Commonwealth.
Life Sciences PA thanks Committee Chairs Pennycuick, Miller, Farry and Kearney for their interest in this topic.
Investments in Pennsylvania’s Life Sciences Community
Life Sciences PA was pleased to attend and participate in two announcements by companies making significant investment in Pennsylvania’s life sciences community. These announcements are testament to Pennsylvania’s life sciences ecosystem and are important catalysts for continued growth in the commonwealth’s innovation economy. LSPA appreciates the collective effort of the companies working collaboratively with Governor Josh Shapiro; DCED Secretary, Rick Siger; and Chief Transformation Officer, Ben Kirshner to finalize these critical projects.
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- January 30, Eli Lilly and Company announced a $3.5 billion investment in Pennsylvania. Lilly will be building a manufacturing facility in the Lehigh Valley region. This project is expected to create more than 2,000 construction jobs and 850 permanent jobs.
- Johnson & Johnson announced February 18 its plan to build a next generation cell therapy manufacturing facility in Lower Gwynedd Township, Montgomery County. This project will advance innovation on behalf of patients and support the creation of more than 500 biomanufacturing jobs when fully operational and more than 4,000 construction jobs during site development.
- TerraPower Isotopes March 17 announced a $450 million investment in Philadelphia. This new facility will advance the development of life saving cancer treatments, create 225 full-time jobs over the next three years and strengthen Pennsylvania’s robust life sciences ecosystem.
Legislative Updates
In addition to the Governor’s budget address and important economic development announcements, Life Sciences PA is also closely following these legislative developments from the first three months of legislative activity in 2026:
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- Representative Tim Briggs released a co-sponsorship memo to establish legislation for the Governor’s “Innovate in PA 2.0” program, and Senators Hughes, Santarsiero, and Costa introduced legislation (SB 1175) for their “Innovate in PA 2.0” program.
- Senators Farry and Pennycuick released a co-sponsorship memo for a bill to establish the “Biobonds Innovation Fund.”
- Representative Emily Kinkead introduced legislation to ban the use of co-pay accumulators – HB 2226
- Representative Borowski introduced legislation (HB 2162) to update the state’s Virtual Manufacturing License for pharmaceuticals and devices.
- Life Sciences PA was pleased to see Representative Friel’s legislation to permit the sale of Net Operating Losses (HB 1129) pass the House January 28, 2026. It has now been referred to the Senate Committee on Finance.
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Upcoming Events
Life Sciences Future SW will unite stakeholders from the region and beyond, including life sciences start-ups, established industry leaders, academic institutions, healthcare providers, and investors.
This event will strengthen connections with the Southwest region while fostering new relationships across the state. The conference aims to create a more cohesive and thriving regional ecosystem that supports business growth, innovation, and collaboration in the life sciences sector.
Kick off the America250 celebrations with the fifth annual Life Sciences PA Tailgate250! Join us April 30, 2026 in Philadelphia and at life sciences hub, The Lawn @uCity Square, for food, beverages, games, live music, and networking with other life sciences professionals.
Register as an individual to enjoy the fun of the tailgate atmosphere without any setup, or purchase a 10×10 space on the square and bring your team to decorate with tents, chairs, games and more to showcase your organization. Registration covers all food, beverages and entertainment!
Advocacy Day is an opportunity for LSPA members to meet with key legislators, staff, and peers in Harrisburg and tell your organization’s story. Gain a better understanding of what it means to be an advocate and attend meetings with elected officials to discuss issues that are significant to you.
You don’t have to be an expert in public policy or be up to date on the latest policy debates, your story and your voice are all you need to attend this event. There is no fee to attend – Register Now!
Life Sciences Future is the annual meeting of the Pennsylvania life sciences ecosystem. From biotechnology, medical device and diagnostics, pharmaceuticals to research institutions, investment organizations, and strategic advisors, all key stakeholders will gather September 30- October 1, 2026 in King of Prussia, this year with a prime focus on strategic partnering.
Join a planning committee to save on registration and help plan LSPA’s largest partnering event of the year
Event Recap
2026 Annual Dinner & Showcase
On March 11, 2026, Life Sciences Pennsylvania gathered leaders, innovators, and advocates from across Pennsylvania’s life sciences community at one of Philadelphia’s most iconic venues, the Philadelphia Museum of Art, for our Annual Dinner & Showcase. The evening was a celebration of the innovation, leadership, and patient-centered work that defines our industry at its best.
Honorees spanned ten award categories, spotlighting excellence in scientific achievement, executive leadership, and direct patient impact. From Dr. Paul Friedman’s decades of visionary leadership, to Dr. Stanley Plotkin’s lifetime of pioneering vaccine development and his landmark rubella vaccine, to the groundbreaking CRISPR gene editing work of CHOP and Penn Medicine, to the emerging companies shaping the future of our industry, the breadth of recognition reflected the remarkable talent driving Pennsylvania’s life sciences sector forward.
Among the evening’s highlights, the 2025 Deal of the Year was awarded to Kite for their acquisition of Interius BioTherapeutics, recognizing a transaction with significant implications for cell therapy and the broader oncology landscape. Dispatch Bio took home Emerging Company of the Year honors, recognition well-earned by one of the region’s most promising emerging companies.
We are proud to convene this community each year, and this year’s dinner was a powerful testament to the depth of talent and dedication that continues to define Pennsylvania’s life sciences sector.
BEING A LIFE SCIENCES LEADER PODCAST
With a bird’s-eye-view of the life sciences industry, Life Sciences Pennsylvania President & CEO, Chris Molineaux, joins Rachael Bushey, Partner and Co-managing Partner of the Philadelphia office of Goodwin Procter to welcome life sciences leaders to give insights into the complex and high-risk world of pharmaceuticals, biotechnology, medical devices, diagnostics and the services that support them. Here we learn what it means to be a life sciences leader.
Welcome 2026 New Members
Allied Resources Technical Consultants
Archentis Partners
BIP
CGZ Healthy Holdings Inc
Chryselys
CRB Consulting Engineers, Inc.
Cure Dynamics, Inc.
Cure LGMD2i Foundation
ElkosRx
Epidarex Capital
Ethos Biosciences
Generian
Grand River Aseptic Manufacturing (GRAM)
LexStrat Law
Leyton
Louve & Faucon Consulting, LLC
Mandeville Therapeutics
Nuevocor Therapeutics Inc.
Pittcon Conference and Exposition
Prana Life Sciences, LLC
ProBio
SeqCenter
Skillpad Inc.
Strongarm Designs, Inc.
Subito Motus Consulting LLC
T-NeuroDx
TrialStat Solutions Inc.
Thank you to our 2026 newsletter sponsors
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Life Sciences Pennsylvania was founded in 1989 by a biotech scientist at Penn State University. Today it has grown to represent the entire life sciences industry – biotechnology and diagnostic companies, medical device companies, pharmaceutical companies, investment organizations, research institutions, and myriad service industries that support the life sciences in Pennsylvania.