As the U.S. moves away from reliance on Chinese CDMOs, Southern cities provide a model for how we can bolster domestic production capacity.
As we advance into the era of genetic therapies and precision medicine that enable treatments tailored to a patient’s unique genome and medical history, America’s continued leadership in biotechnology is critical. However, this leadership is threatened by our dependence on China for crucial components of our biotech supply chain. This reliance compromises our national security, economic competitiveness and ability to protect sensitive data.
The solution lies in decoupling from China and simultaneously investing heavily in domestic manufacturing. Recent bipartisan federal proposals, such as the latest version of the BIOSECURE Act, highlight the urgency of this shift. This legislation is designed to restrict Chinese companies’ access to the American market, pushing us to build our own capacity. The industry has already started moving away from Chinese contract development and manufacturing organizations (CDMOs), driven by concerns over national security and the need to protect intellectual property.
The second element of the solution is investing in our own manufacturing capacity. Driving this strategy is the U.S.’s commitment to investing in the technologies of the future. Landmark legislation such as the CHIPS and Science Act has allocated significant resources to bolster America’s technological and industrial base. This act provides funding to expand domestic semiconductor manufacturing, enhance research and development in critical technologies, and support the creation of regional innovation hubs across the country. These investments are not just about technology; they are about securing America’s position as a leader in the global economy and ensuring that critical supply chains are resilient and secure.
Momentum is building for this two-pronged solution across the United States, particularly in the Deep South, a region that is driving the growth of a robust domestic biotech industry.
The South Emerges as a Leader in Biotech Manufacturing
Southern Research, the Birmingham, Alabama–based nonprofit institute where I serve as president and CEO, is deeply involved in advancing manufacturing capabilities, leveraging its extensive capabilities to support drug development from initial discovery through to preclinical testing and pilot-scale manufacturing. With state-of-the-art laboratories and facilities, Southern Research excels in development of small molecules and biologics—critical components of the domestic biotech supply chain.
Birmingham’s advanced manufacturing capacity will be bolstered through the Edgehill at Southtown development, which comprises more than 800,000 square feet of commercial wet lab and office space, including an incubator for early-stage companies and a 40,000-square-foot training center for biotech and biomanufacturing jobs in partnership with state agencies and the two-year college system. The development, which broke ground on the residential development in 2023 and is set to continue development of retail and commercial buildings through 2025, is a testament to bipartisan collaboration across federal, state and local governments that are forming public-private partnerships. Enabled by new “R&D Corridor” legislation passed in the Alabama legislature and buoyed by Birmingham’s designation as a Regional Tech Hub under the Economic Development Administration’s Tech Hubs program, Edgehill at Southtown will foster place-based economic development and growth in Alabama’s biomanufacturing capabilities.
Meanwhile, in Louisiana, the New Orleans BioInnovation Center has been instrumental in the progress of the $70 million BioDistrict New Orleans that aims to position the city as a global center of excellence in research and healthcare specialties. The BioInnovation Center’s 66,000-square-foot downtown campus is nearing full capacity, prompting additional investment in dedicated lab and office space to support a new generation of companies that will bolster American biotech manufacturing capabilities. Since launching its technical assistance program, the New Orleans BioInnovation Center has helped bootstrap more than 350 companies that have collectively raised more than $180 million.
In Georgia, significant strides are being made with projects like Science Square near Georgia Tech in Atlanta and the Rowen development outside the city. Science Square, a $500 million investment, aims to create a vibrant biotech community with cutting-edge research facilities and incubator space for startups. The Rowen development, spanning over 2,000 acres, is designed to foster innovation and collaboration among biotech companies, researchers and educators. These initiatives are set to create hundreds of companies and thousands of jobs, positioning Georgia as a key player in biotech.
Funding and Collaboration Are Key
These examples illustrate how regional success stories can provide a blueprint for nationwide growth in biomanufacturing capabilities. Key elements for these successes include substantial federal and state funding, local government support and collaboration between the public and private sectors.
For the U.S. to continue this momentum, it’s crucial to invest in regional innovation ecosystems to build up manufacturing capacity. Achieving this goal requires that Congress fund additional appropriations for the Tech Hubs program, which supports dynamic innovation ecosystems across the nation focused on technologies critical to our national security, including biotech and precision medicine. Building these ecosystems will not only secure the biotech supply chain but also drive economic growth and innovation. These investments will create an environment where companies can thrive, data can be securely managed and American ingenuity can lead the way.
The Southern region’s progress is a promising start, but more needs to be done. Strengthening our domestic manufacturing capabilities will require ongoing investment and policy support. As we decouple from China, we must build a resilient, self-sustained biotech industry that can withstand global pressures and lead in innovation.
