US Export Plan - Sector Report - Pharmaceutical Services

Opportunity states

Critical decision-making hubs for pharmaceutical services are concentrated in states with strong biopharma clusters.

California hosts a significant number of major pharmaceutical headquarters and R&D centres, and the largest number of companies in the sector as whole at 8,791. The state has five major science and technology universities, and San Francisco is a pharmaceutical and biotech hub with a strong university hospital system through Stanford University, which high tech companies are funding. Some consider California to have exceeded Boston in the life sciences field in terms of attracting the best local talent, and having sufficient capital, particularly with Silicon Valley’s infrastructure, as well as a growth-oriented culture and network compared to other regions. The number of VC deals in the sector, at 444 in the latest data, is significantly higher than other significant states, which gives a sense of the activity in the area. Companies here are leveraging cutting‑edge technologies such as genetic engineering, cell therapy, and drug discovery, making the region a fertile ground for pharmaceutical services.

Texas, with Houston at the forefront, is emerging as a significant player in oncology and biomedical innovation. The Texas Medical Center (TMC), which is the largest medical complex in the world, serves as a global hub for collaboration, including partnerships with the UK through the UK-TMC BioBridge. This BioBridge is designed to help UK HealthTech companies enter the US market through accelerator cohorts, with a key focus on innovation and research. It also facilitates collaboration, and market access for startups and established companies, leveraging TMC's vast resources and clinical expertise.^[29] The state’s immense concentration of hospitals, research institutions, and biotech firms provides fertile ground for pharmaceutical services, especially in cancer research and advanced therapeutics. Texas has the second highest number of clinical trials run of all the major states.

North Carolina, and particularly Raleigh and the broader Research Triangle region, is a major hub for biotechnology and pharmaceuticals. Anchored by top universities and research institutions, the area has cultivated a thriving ecosystem of startups, established pharma companies, and contract research organisations. This concentration of talent and infrastructure positions Raleigh as a dynamic growth point for pharmaceutical services, particularly in manufacturing, clinical research and drug development.^[30]

New Jersey is a big pharmaceutical hub and is the largest state for pharma imports from the UK, with some $1.3bn per year. New Jersey is often referred to as the “Medicine Chest of the World” due to its long history of hosting major pharmaceutical headquarters and R&D centres. The state is a critical territory for therapeutics and drug development, with a strong infrastructure supporting manufacturing, clinical trials, and regulatory expertise. Its proximity to New York and Philadelphia further enhances its attractiveness, offering access to large healthcare markets and talent pools.^[31] New York is also strong, and hosts major pharmaceutical headquarters and R&D centres too, and for many exporters it is sensible to have a dual focus on New York and New Jersey together.^[32]

Massachusetts leads globally in biotech and pharmaceutical innovation, particularly in Cambridge and Boston, with Kendall Square (Cambridge) and the Longwood Medical Area (Boston) being the twin epicentres of Greater Boston's world-leading life sciences and biotech clusters. In these areas, there are a large number of biomedical centres and biotech companies, such as Harvard Medical School, Biogen and Takeda, that focus on areas such as difficult-to-treat diseases and therapeutics. This is in great part due to the volume of science and technology universities and associated teaching hospitals like Harvard and MIT. Massachusetts is also home to the second highest level of VC deal in the sector, at 296 in the latest data.

Given the size and geographical location of the opportunity states outlined above, competition is significantly more intense, particularly in states like Massachusetts and California. Entering these markets presents substantial challenges related to strategic positioning, higher indirect costs, and the need to build genuine visibility, all of which should be carefully considered by businesses looking to export here.

Other notable opportunity states include:

Connecticut boasts a strong pharmaceutical presence, with numerous laboratories and industry players concentrated in the state. Its research ecosystem is supported by leading universities and biotech firms, creating opportunities for collaboration and innovation. The state’s established pharmaceutical industry makes it an attractive location for companies seeking both scientific expertise and proximity to the broader Northeast corridor of healthcare activity.

There is also a well-established and growing biopharmaceutical cluster that exists in the region around Washington DC including Maryland and Virginia, frequently referred to as the BioHealth Capital Region (BHCR). It has matured into a global leader, particularly in biomanufacturing and vaccine development, with more than 1,800 life sciences companies in the region.^[33] Maryland also has a specific agreement with the UK to promote economic development, which includes exchanges for life sciences companies to explore the US market for expansion.

Overall, entry into large pharma chains can be challenging, particularly in the US, but there are many opportunities for smaller, fast-growing companies and regional ecosystems, offering a strategic pathway into the evolving pharmaceutical supply chain, whether making the decision to enter an established cluster or emerging hubs.