Bioscience sector to expand in San Antonio amid UT merger, investment
Writer: Andrea Teran
July 2025 — San Antonio is cementing its position as one of the nation’s rising biomedical hubs, with new research investments, collaborative public-private partnerships, and a steady pipeline of talent and innovation fueling expansion across the sector.
Anchored by institutions such as UT Health San Antonio, Texas Biomedical Research Institute, and Southwest Research Institute, the bioscience and healthcare industry already drives an estimated $44 billion in annual economic impact, supporting more than 180,000 high-wage jobs.
“One of the reasons San Antonio is becoming a compelling ecosystem for the bioscience sector is its collaborative spirit,” Heather Hanson, president of BioMedSA said to Invest:. “We see that in the drug development space, for example. San Antonio has all the necessary steps to go from the beginning of an idea, to computer modeling, screening, and testing, through to manufactured products and all the different steps in between needed to get FDA approval.”
This collaborative environment is evident in BioMedSA’s recent milestones. “Our BioFest Invest event alone has helped pitching companies raise $85 million since the event started in 2021,” Hanson noted, adding that the region’s accessible researchers and expanding research capability continue to attract investment and partnerships.
A major catalyst for future growth is the pending merger of UT Health San Antonio and UTSA, set to finalize on Sept. 1, 2025. When combined, the new academic medical research powerhouse will have roughly 40,000 students, 16,000 employees, and a budget exceeding $2.2 billion, positioning it among the Top 3 largest research universities in Texas. Once completed, the combined entity will rank behind only the University of Texas at Austin and Texas A&M University. The merger is expected to boost the local research ecosystem’s annual economic impact beyond $6 billion.
UT Health ranked 49th among 148 U.S. medical schools in National Institutes of Health (NIH) funding in 2024, with $125.4 million in NIH grants, placing it in the Top 2.4% out of nearly 3,000 public and private institutions. Its departments of biochemistry and dentistry also secured Top-20 NIH funding rankings in their categories.
Meanwhile, UTSA’s research expenditures rose to $173.2 million in fiscal year 2025, marking five consecutive years above the $100 million threshold.
Despite the growth trajectory, some local research leaders are raising concerns about potential cuts. Proposed federal changes to indirect-cost reimbursements could reduce UT Health San Antonio’s NIH funding by $32 million to $35 million annually, with UTSA potentially losing an additional $3 million and Texas Biomedical Research Institute about $13 million each year. A temporary block on the policy is in place as universities advocate for a longer-term fix.
With its historic merger, sustained infrastructure investments, and growing research rankings, San Antonio’s bioscience sector is expected to remain a pillar of the city’s economic diversification strategy.
“We’re in that critical space that moves science innovation forward by converting discoveries in the lab into practical applications for the clinic, which is really where Texas Biomed wants to be,” said Dr. Larry Schlesinger, president and CEO of Texas Biomed to Invest:. “Our secret sauce continues to be the tremendous support of the city and county, and our close partnerships with academic institutions and the private sector.”
For more information, please visit:
