The biotech industry, while slowed, still has some life in Watertown, according to a recently published study. The City boasts the third most life science firms of any community in Massachusetts, the fourth most venture capital investmentd, and 20 new firms came to town in 2025.
The 2025 Watertown Life Science Industry Report was released by Watertown Bio founder Sam Ghilardi, and looks at the economic impact of life science firms, the profile of firms in town, the drug development pipeline, and real estate/life science space in Watertown.
Watertown Bio covers the latest scientific and business from Watertown, and publishes a newsletter focused on the industry in town. According to the study, “Watertown Bio’s mission is to promote Watertown as a community of choice for the life science industry by promoting discoveries from local institutions and cultivating innovation and collaboration through educational and networking events.”
Watertown Bio announced the release of the study with the following highlights:
Watertown’s life science industry has grown rapidly over the last decade, and is now consistently the third largest among municipalities in Massachusetts, behind only Boston and Cambridge. We at Watertown Bio have produced an industry report that first time characterizes Watertown’s life science industry, including the industry’s economic impact, drug discovery pipeline, community makeup, funding environment, major deals, and real estate inventory. Some key highlights from 2025 include:
- There are 78 MassBio member firms in Watertown, the third most among cities and towns in MA behind Boston and Cambridge. We counted 101 total firms as of December 2025
- Employment dipped from 2024 to the first half of 2025, while the number of firms headquartered in Watertown increased modestly.
- After a record-breaking VC year in 2024, funding returned closer to the levels seen in 2022 and 2023. Watertown ranked fourth among cities and towns in MA for VC funding, behind Boston, Cambridge, and Waltham.
- Watertownʼs drug pipeline closely mirrors Massachusettsʼ, with particular specialties in immunomodulators and sensory organs.
- Watertown had the highest 2025 absorption in the region according to CBRE, but availability remained elevated at 45%. Watertown maintains its fundamental affordability advantage, with Q4 asking rents at a 22.5% discount to East Cambridge, a 15.1% discount to our neighbors in Allston, and only a 10% premium over Waltham and Lexington.
- The life science industry continues to drive benefits in the community through property taxes to fund new schools, new parks, and municipal improvements, while maintaining the 2nd lowest residential property tax burden in the metro area.
Charting Watertown’s Life Science Future
The Charles River Regional Chamber will host a panel that will look at the life science industry in Watertown and how it faces changing economics. See the announcement provided by the Chamber, below.
Watertown’s life sciences sector surged over the past decade, transforming the city into a recognized hub of Greater Boston’s innovation economy and reshaping the local commercial landscape. However, the industry is navigating real headwinds: tighter venture capital markets, federal uncertainty, shifting space needs and a real estate pipeline that’s outpaced demand. Still, Watertown has been able to attract tennants despite the conditions.
This program centers on a new report from Watertown BIO examining both the city’s recent gains and the challenges ahead. We’ll follow that with a candid conversation about where the industry stands and how Watertown can stay competitive in a shifting market.
Remarks: Eric Paley, State Secretary of Economic Development
Presenter: Sam Ghilardi, Founder and Publisher of Watertown BIO
Our panel includes:
- George Proakis, Watertown City Manager
- Philip Borden, CEO of Labshares
- Mark Deschenes, President of Boylston Properties
- Hannah Green, BBJ, Moderator
Additional panelists to be announced