While Houston isn’t yet on the same level as major life sciences hubs, it has plenty to offer and room to grow, according to CNS Pharmaceuticals, RadioMedix and Greater Houston Partnership executives.
As an emerging life sciences hub within the Lone Star Bio hotbed, Houston has made a name for itself in multiple ways. It’s known for its work not only in oncology but also in cell and gene therapy and medical devices, noted Verena Kallhoff, senior director of global life sciences at the Greater Houston Partnership.
“It’s an incredibly vibrant life sciences ecosystem,” Kallhoff told BioSpace. “Lots of organizations that are playing in it are helping startups become successful, helping medium-sized companies mature. So, lots of activity, but we are a large region, and so that sometimes leads to it not being as well recognized because it’s not quite as concentrated as us being all around one square.”
Houston probably needs to be more on the radar screen, said Ebrahim Delpassand, CEO, co-founder and chairman of RadioMedix. The clinical-stage biotech based in Houston develops targeted radiopharmaceuticals for cancer diagnosis, monitoring and therapy.
“All of the ingredients that are needed for having a successful biotechnology company exist in Houston,” Delpassand told BioSpace. “We just need to spread the word.”
Houston has more than 1,100 established life sciences and biotechnology companies, according to the Greater Houston Partnership. Kallhoff said hundreds of life sciences startups have emerged out of the city’s ecosystem, and many companies from across the globe have come there to advance their technologies.
What people might not know about Houston’s life sciences scene, according to Kallhoff, is that it can provide a full pathway for bringing drugs to market. She noted that the city has strong research institutions like The University of Texas MD Anderson Cancer Center, Baylor College of Medicine and Rice University as well as accelerators, incubators and initiatives that help researchers explore how they can move from discovery to commercialization.
Proximity to Texas Medical Center and MD Anderson
There are multiple advantages to being in Houston, according to Delpassand, Kallhoff and John Climaco, CEO of CNS Pharmaceuticals, a clinical-stage biopharma based in Houston. One of the most significant, according to Delpassand and Kallhoff, is proximity to the world’s largest medical complex, the Texas Medical Center. The center is home to dozens of institutions, including MD Anderson, Baylor and Rice.
Climaco cited proximity to MD Anderson as an advantage for companies like CNS, which is developing a pipeline of anti-cancer drug candidates.
“If you’re in the oncology world, that’s the gold standard anywhere in the world,” Climaco told BioSpace about MD Anderson, which has the largest cancer clinical trials program. It had 1,556 trials in fiscal year 2024.
Having a relationship with MD Anderson is also an advantage for life sciences companies in Houston, according to Climaco. CNS itself has strong ties to the cancer center. Waldemar Priebe, a professor of medicinal chemistry at MD Anderson, founded CNS in 2017. He developed Berubicin, a next-generation anthracycline that was the biopharma’s first drug, at the cancer center.
Having a drug with ties to MD Anderson instantly makes people take companies seriously not just in Houston but around the world, according to Climaco.
Venture-Friendly, Risk-Friendly Funding Environment
Houston’s life sciences companies are in a good funding environment, according to Delpassand. He noted that such an environment is especially important for startups, using RadioMedix as an example.
Delpassand shared that for the first few years of the biotech’s existence, he essentially funded the company himself. Then, in 2010, RadioMedix received $2.8 million from the Texas Emerging Technology Fund. Delpassand said the money helped the biotech at a critical time in multiple areas, including expanding its laboratories and hiring more scientists.
Climaco noted that Texas has a good early-stage mindset when it comes to funding companies.
“I think a lot of investors in Houston are used to being up and down and up and down, and it doesn’t scare them,” he said. “And that’s really important for biotech, because especially the last five years, it has been a seriously wild ride.”
I think a lot of investors in Houston are used to being up and down and up and down, and it doesn’t scare them. And that’s really important for biotech, because especially the last five years, it has been a seriously wild ride.
Houston is venture friendly and risk friendly, Climaco said.
“It’s not running from risk,” he said. “It’s running toward risk.”
While discussing funding opportunities for Houston’s life sciences companies, Kallhoff highlighted the Cancer Prevention and Research Institute of Texas. The $6 billion 20-year initiative dedicated to cancer research and prevention has awarded more than $3.7 billion in grants to research institutions and organizations in the state.
Regarding other financial assistance opportunities, the Houston market received $930 million of National Institutes of Health funding in fiscal year 2023 and $180 million in venture capital funding in 2023, according to an April 2024 Colliers life sciences report.
Tens of Thousands of Talented Professionals and Experts
For companies seeking life sciences talent, Houston has much to offer given its medical schools and other educational institutions that train the future workforce, according to Delpassand. He noted that this is important because personnel is the most valuable asset for any business.
The Houston market ranks No. 14 for life sciences total employment, with 27,500 employees, according to a March 2025 Cushman & Wakefield life sciences report. That report also projected the market’s 10-year life sciences employment growth rate at 76.5%.
Climaco agreed with Delpassand about the value of Houston’s educational institutions, noting that they’re chock full of experts who can guide and consult with life sciences companies. For scientific advisers and board members specifically, there are tens of thousands of people in Houston that fit that bill, according to Climaco.
“You don’t really find that kind of heavy concentration outside the other big hubs,” he said.
Affordability for Companies and Their Employees
When it comes to a company’s bottom line, Delpassand noted that Houston’s infrastructure costs, including for commercial real estate, are a valuable advantage for those who want to start a business in the city.
The asking rent in Houston for the third quarter of 2024 was $47.53 per square foot on a triple net lease where tenants pay property taxes, building insurance and maintenance costs, according to a Transwestern report. That’s lower than rents for Boston ($57.65), San Diego ($52.85) and San Francisco ($61.96).
Kallhoff agreed with Delpassand that the cost of doing business in Houston is beneficial. She noted that there’s cost-effective—and abundant—space across the region, whether that’s for wet labs or just desks. According to the Cushman & Wakefield report, Houston has 680,000 square feet of life sciences space under construction and 1.1 million square feet proposed.
Houston’s cost of living is also noteworthy, according to Kallhoff and Delpassand. Delpassand said the fact that it’s not as high as in other big cities makes a difference when RadioMedix hires people.
According to Salary.com, the cost of living in Houston is 5.4% lower than the national average, a stark contrast to major life sciences hubs Boston and San Francisco, where it’s 53.1% and 86.5% higher, respectively, than the national average.
What Comes Next: Areas of Emphasis and More Growth
Looking ahead for Houston’s life sciences scene, Kallhoff said oncology and neurology will be among the areas that are big in the next five years. Regarding neurology specifically, she noted that the Texas Legislature is considering setting up a dementia prevention and research institute similar to the Cancer Prevention and Research Institute of Texas. Robust dementia work is already happening at area research institutions, she said.
Climaco expects Houston to grow quickly moving forward, although he noted that the life sciences industry is tough right now. When the market turns around, he predicted, the city will probably explode as a biotech hub.
“It’s such a science-friendly place,” Climaco said. “And as I said, so much talent in academia for advisers and experts and developers of technology. It’s got a lot going for it.”
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