UPMC, a life sciences leader in Pittsburgh, is spending $2 billion to develop three new hospitals, the UPMC Heart and Transplant Hospital (620 beds, 1 million SF) on UPMC Presbyterian’s campus; UPMC Vision and Rehabilitation Hospital (300,000 SF) will be located at UPMC Mercy; and the UPMC Hillman Cancer Hospital.
Pittsburgh: A Top Emerging Healthcare and Life Sciences Ecosystem
In a world where health and safety are paramount, life sciences, healthcare and biomedical companies in Pittsburgh are at the forefront of the region’s advancements in the digitization of healthcare, therapeutics, clinical research and medical devices.
We’re home to two major, world-class hospital systems, Allegheny Health Network and University of Pittsburgh Medical Center (UPMC). And as one of the region’s largest sectors by employment, Pittsburgh is attractive to top talent and R&D investment dollars.
Pittsburgh is a place where the strategic connection and convergence of tech, manufacturing and life sciences is producing solutions to some of the world’s biggest healthcare challenges.
life sciences and healthcare establishments
healthcare and life sciences capital investment (2011-21)
“We find Pittsburgh to be a great combination of talent, a biotech community and a quality of life that allows Krystal Biotech to attract really smart people who want to work on a great cause.”
UNIVERSITY OF PITTSBURGH
University of Pittsburgh is the region’s life sciences industry anchor and is globally renowned for research in immunization, transplantation and neuroscience.
- Jonas Salk invented the polio vaccine at Pitt in 1953
- $675M NIH grants in 2022 from 1,270 awards
- 3rd nationally in NIH funding
- 9th nationally in life sciences R&D expenditures ($983M)
UNIVERSITY OF PITTSBURGH MEDICAL CENTER (UPMC)
The largest employer in the region, UPMC operates 40 hospitals and 800 doctors’ offices and outpatient sites. It invested $2B in three new specialty hospitals. UPMC Enterprises, the commercialization arm of UPMC, announced a $1B investment over four years to commercialize new drugs, diagnostics and devices.
ALLEGHENY HEALTH NETWORK (HIGHMARK HEALTH INSURER)
Allegheny Health Network (AHN) is 14-hospital integrated delivery network – the second largest integrated delivery and financing system in the United States. It recently announced a $1B+ investment in hospital expansions. AHN also launched AlphaLab Health accelerator in 2020 with seed-stage investor Innovation Works.
PITTSBURGH HEALTH DATA ALLIANCE
A collaboration formed between Carnegie Mellon University, the University of Pittsburgh and UPMC, the Alliance works together to turn data into improved human health. Its goal is to develop solutions, powered by human-centered AI, to prevent the onset of disease, improve diagnosis and enhance quality of care.
degree and certificate completions (2020-21)
patents awarded to regional research institutions in 2018
Infrastructure & Facilities Improvement Program grant helped retain 1,833 retained jobs at Washington Hospital.
Excela Health hired 40 employees at its call center operation in Hempfield, including 10 with clinical experience to help patients find the appropriate provider.
Announced it’s moving its regional HQ to Bakery Square, occupying 200,000 SF of office real estate. Philips Sleep & Respiratory Care specializes in products that improve respiratory function, including products for the diagnosis and treatment of sleep apnea like CPAP and BiPAP machines.
Maitri Medicinals LLC, which recently doubled its staff to 35 and adding another 25 to 35 by early 2020, is building out two medical marijuana dispensaries, relocating its corporate offices to East Liberty and plans to start growing cannabis in a warehouse in O’Hara Township in the near future.
Pantherx Specialty Pharmacy, one of the fastest-growing private companies in the Pittsburgh region, has 200 employees and $1 billion in revenue in 2019, expanded into a 50,000 SF facility in Moon to focus on precision medicine and orphan drugs, life-saving medicines that treat rare diseases.
Planned veteran’s wellness center and veteran’s services office.
New outpatient center, $13.8 million, 24,300 SF facility that will provide primary, specialty and urgent care services.
The outpatient facility will be a shoulder-to-hand orthopedic center and medical office totaling 47,432 SF.
Broke ground on a $75 million to $100 million, 100,000 SF pharmaceutical manufacturing facility near Pittsburgh International Airport that will double the biotech firm’s employee base to 100,000 SF on International Drive.
Announced expansion of its Pittsburgh operations, putting the company’s office presence at 216,000 SF and ramping up to 1,500+ staff in the region. ConnectiveRx is a leading services company that works with biopharma manufacturers to commercialize and maximize the benefits of specialty and branded medications.
Expanding its operations to 202,817 SF of space at Clinton Commerce Park near the Pittsburgh International Airport. Haemonetics, a hematologic medical device and supply company, plans to move into the building in the first quarter of 2021.
West Palm Beach, Fla.-based Parallel, via Goodblend, is collaborating with Pitt to test the company’s cannabis formulations in the treatment of sickle cell disease and other issues. Pitt will receive $3 million as part of the deal in unrestricted grants to investigate the efficacy and safety of medical cannabis.
*In July 2023, Goodblend Pennsyvlania announced it’s closing its operations in Pennsyvlania
Launched AlphaLab Health in collaboration with Innovation Works. AlphaLab Health is an incubator that accelerates scientific, clinical and market validation for early-stage healthcare and life science technology companies.
PurePenn, a cultivation and production company, produces pharmaceutical-grade medical marijuana products. PurePenn currently operates a 35,000 SF cultivation and processing facility in McKeesport, which is undergoing expansion to 90,000 SF and expected to be operational by the first quarter of 2021.
Bayer announced the building of a new distribution center in Saxonburg, Butler County, to service its three medical device manufacturing plants in the region. The 220,000 SF distribution facility will be managed and staffed by FedEx Supply Chain, a third-party provider of warehousing and fulfillment operations. Employment at the new center is expected to grow to 40.
Looking to hire 25 manufacturing workers this quarter and currently converting office space for manufacturing to accommodate increased production. Its Parks Township operation — with 245 employees — focuses on several products, including a device to extract leads from pacemakers, blood flow monitors and in vitro pipettes.
Secured $35 million in series B funding and is establishing a physical HQ at Life X. Peptilogics is a clinical-stage biotechnology company that designs and develops novel peptide therapeutics for patients with serious and life-threatening diseases.
A London-based portfolio medical technology company, Smith+Nephew opened a new facility in Pittsburgh focused on robotics technology, R&D and surgical training – advancing innovation in orthopaedic surgery.
Chosen to be in the second cohort of startup companies in the AlphaLab Health accelerator program, Parcel Health aims to solve global healthcare industry problems with innovative product and technology solutions. Its Phill Box is the first fully recyclable and compostable medication packaging to reach pharmacies.
Opened a new state-of-the-art research facility that will serve as the innovation hub for AlphaLab Health. The facility is a 10,000 SF open-concept space fully equipped with advanced technologies and facilities, including wet and dry labs.
Signed a long-term lease at Nova Place for more than 44,000 SF of space that will combine wet lab space and office. This will enable Castle to expand the local operations of Cernostics Inc., a startup whose TissueCypher technology uses artificial intelligence to analyze tissue biopsies for esophageal cancer.
Pitt is partnering with ElevateBio under a 30-year agreement that is designed to bring the research and manufacturing of cutting-edge, life-giving treatments to Hazlewood Green. ElevateBio will build an 80,000 SF facility known as BaseCamp that will be involved in the research, development and manufacturing of cell and gene therapeutics and technologies, including gene editing.
AbsoluteCare is opening a Comprehensive Care Center in Pittsburgh that will have up to 80 new jobs. AbsoluteCare offers primary care services in a concierge model for people with extensive health needs and also includes urgent care, lab, radiology, infusion, pharmacy, nutritional counseling and behavioral health services.
Announced plans to begin constructing a 31,000 SF inpatient behavioral health center near the end of 2023. The new inpatient mental health facility would cost approximately $14 million and would comprise 44 beds for adolescent, adult and geriatric patients.
Bayer is expanding its digital solutions unit (hiring between 75-100 positions) and other operations in Pittsburgh as the company increases its businesses in health care. Bayer’s Pittsburgh operations are its fourth-largest site in the U.S., as well as its global headquarters for device research and development as well as holding support for Bayer radiology and women’s health care medical devices, digital solutions and commercial operations. It has three manufacturing sites in the region: O’Hara, Saxonburg and Indianola.
This life sciences company is developing a drug designed to treat cytokine release syndrome (CRS) and recently raised $7 million in funding. It also recently received FDA approval to begin the next phase of its clinical trial to treat CRS in lymphoma patients receiving CAR T-cell therapy.
AlphaLab Health is an incubator that accelerates scientific, clinical and market validation for early-stage healthcare and life science technology companies. AlphaLab Health is a collaboration between Innovation Works and Allegheny Health Network.
LIFE SCIENCES PENNSYLVANIA
Life Sciences Pennsylvania facilitates the formation, growth and success of the commonwealth’s life sciences community through public policy advocacy and connecting people and resources. Life Sciences PA represents biotechnology, medical device, diagnostic, pharmaceutical, research, investment entities and service providers who support the industry.
Supported by the University of Pittsburgh’s Graduate School of Public Health and the Henry L. Hillman Foundation, LifeX Labs is a startup incubator and accelerator that de-risks early-stage life sciences companies in terms of time, resources and investment.
UPMC Enterprises is the innovation, commercialization and venture capital arm of UPMC with a mission to transform ideas into thriving businesses and life changing medicine. It provides its companies capital, connections and resources to develop solutions to health care’s most complex problems.
Startup Genome, a global leader in ecosystem research, spotlights the Pittsburgh startup ecosystem as part of its network of 290+ ecosystems worldwide. Pittsburgh is ranked 23rd nationally and 31st globally in the top emerging ecosystems, with its advanced manufacturing/robotics, life sciences and space tech sectors recognized. Pittsburgh has also notably experienced 42.6% growth in ecosystem value, per Startup Genome.
life sciences & healthcare COMPANY SUCCESS STORIES
Krystal Biotech is a gene therapy company that uses its proprietary Skin TARgeted Delivery (STAR-D) platform to develop and commercialize treatments for rare dermatological diseases. Most notably, Krystal developed the first and only FDA-approved drug to treat dystrophic epidermolysis bullosa. From concept to commercialization, Krystal Biotech, Inc. started, scaled and is excelling in Pittsburgh, and is one of the top biotech companies in Pennsylvania.
PHILIPS SLEEP & RESPIRATORY CARE
Founded in Pittsburgh as Respironics and acquired by Philips in 2007, Pittsburgh now serves as HQ for Philips Sleep & Respiratory Care. A major medical device manufacturing company, it specializes in products that improve respiratory function, including products for the diagnosis and treatment of sleep apnea like CPAP and BiPAP machines.
Bayer is a German multinational pharmaceutical and biotechnology company and is one of the largest pharmaceutical companies in the world. As the company’s global headquarters for medical device research and development, Bayer invents, tests and manufactures critical and lifesaving health care support products here in Pittsburgh.
Peptilogics is a clinical-stage biomedical company in Pittsburgh that designs and develops novel peptide therapeutics for patients with serious and life-threatening diseases. Peptilogics is combining the untapped potential of peptide biology with the power of machine learning.
ElevateBio is a technology-driven company focused on accelerating transformative cell and gene therapies. An 80,000 SF ElevateBio BaseCamp manufacturing facility will be an anchor at University of Pittsburgh’s BioForge facility at Hazelwood Green. Those that make up the 170+ high-paying, permanent positions will accelerate access to the cutting-edge technologies and expertise that will change the future of medicine.
London-based portfolio medtech company Smith+Nephew focuses on the repair, regeneration and replacement of soft and hard tissue through the invention and application of new technologies across healthcare like orthopaedics, sports medicine & ENT and advanced wound management. In 2021, S+N opened a new facility in Pittsburgh focused on robotics technology, R&D and surgical training – advancing innovation in orthopaedic surgery.