Organ transplant technology leader TransMedics, a medium-sized company that brings in hundreds of millions in revenue annually, recently announced it will be moving its headquarters to Somerville in 2028. Somerville anticipates the move will add 900 jobs and $75 million in tax revenue over the course of six years. The city of Somerville, along with the state of Massachusetts, provided TransMedics with tax breaks to encourage the move.
TransMedics agreed to $230,000 in annual community investments over 10 years to support Somerville schools, STEM and robotics education and the city’s police and fire departments.
“When the TransMedics brand is illuminated above the city, we want there to be a sense of pride on the city’s part and on the community’s part,” Nick Corcoran, TransMedics senior vice president for supply chain & operations, said.
The company said that it had outgrown its infrastructure in Andover, Mass., and begun searching for a new location. Corcoran asserted that anybody who wants to work with TransMedics has to understand that the company’s fundamental obligation is to serve their patients, and that this responsibility is understood by both the city of Somerville and the state of Massachusetts.
“Governor [Maura] Healy and Lieutenant Governor Kim Driscoll were great partners from the outset … they were clearly very interested in who we are and what we do,” Corcoran said.
Thomas Galligani, executive director of the Office of Strategic Planning and Community Development, said that “from the moment [Somerville] became aware of [TransMedics’] interest, we knew it was an excellent fit.”
According to Galligani, TransMedics is a good fit for Somerville due to the life saving nature of TransMedics’ work, their mission statement and their focus on equity and diversity. “The whole team was very international,” Galligani said, adding that TransMedics is more than just a company making life saving devices.
“They have all aspects of research, operations and sales. They operate a fleet of planes where they transport the organs. There’s a wide variety of jobs and employment opportunities in that company,” Galligani said. “It’s not just a bunch of jobs that can be held by Ph.D.s. They can hire high school graduates and everything in between.”
Joseph Curtatone, former Somerville mayor and Tufts professor of the practice, emphasized the economic benefits the deal would bring to the area.
“You’re going to now have hundreds of workers and they’re going to create new jobs … new businesses are going to expand there or open there and it’s going to help the city’s tax base as well,” he said.
Galligani described the deal as a marriage of convenience. “They were seeking so much space and we have so much vacant lab space,” he said, adding that TransMedics would occupy half a million square feet and take up a significant chunk of the vacancy.
Curtatone described the deal as “a big win for the city of Somerville, a big win for the Commonwealth of Massachusetts, the life sciences and the biotech industry.” He explained that the administration of President Donald Trump’s tariffs and immigration policies were putting a strain on the economy and the private sector, making this deal a way for local policy to help ease that burden.
“That warrants us as local officials … to understand … what could we evolve or implement to allow [us] to continue to be competitive in this very difficult economic landscape,” Curtatone said.
Corcoran said that the state’s support, connections to key institutions, tax incentives and access to talent were very attractive to TransMedics.
“I would like to think we are a very attractive proposition for engineering talent, and I would love to reach out and [for them] to look at TransMedics as a place that they would love to come and be part of,” he said.
The deal is a win for both sides. “How do we deliver services each and every day to our community?” Galligani asked. “We absolutely rely on property tax revenue, and [this deal] would address a big challenge that we have.”
In addition to the revenue benefit, this deal is especially beneficial for Somerville, as the company is aligned with the city’s values.
“The fact that their employment profile is so diverse and so broad — that’s a real sweetener for sure, that makes them like a dream tenant,” Galligani added.
