Summary:
Arsenal Biosciences lays off 50% of its workforce (100 employees) to extend cash runway for clinical trials.
The layoffs occur just a year after a $325 million Series C funding round from top investors.
Company is shifting from early-stage research to clinical development for anti-cancer cell therapies.
Biotech industry faces funding challenges, impacting cell therapy startups despite previous successes.
Laid-off roles include scientists, researchers, and executives, with terminations effective November 14.
Arsenal Biosciences Faces Major Workforce Reduction
Arsenal Biosciences, a biotech startup based in South San Francisco, is laying off approximately half of its employees just one year after securing a massive $325 million funding round. The company, which focuses on developing anti-cancer cell therapies, made this difficult decision to extend its cash runway as it transitions from early-stage research to clinical trials.
Arsenal Biosciences is headquartered at 329 Oyster Point Boulevard, on South San Francisco's biotech-heavy coastline. Courtesy of Google Streetview
Details of the Layoffs
According to a WARN filing, the layoffs affect 100 workers, both at the Oyster Point headquarters and remote employees. Most terminations are set for November 14, with scientist and researcher roles hit hardest, along with several directors and two vice presidents. A company spokesperson stated that this reorganization is necessary to advance clinical programs and achieve critical milestones.
Industry Context and Challenges
Arsenal is currently conducting a study for its leading candidate, a cell therapy targeting kidney cancer, and has additional prospects and collaborations with pharma giant Bristol Myers Squibb. However, the cell therapy sector has been struggling with funding pullbacks and market challenges, leading to widespread austerity in the biotech industry. Despite this, Arsenal had previously raised $220 million in a Series B round in 2022 and $325 million in a Series C in September 2024, backed by high-profile investors like Kleiner Perkins, Nvidia's venture arm, and Softbank Vision Fund 2.
Employee Reactions
Laid-off employees have expressed shock on platforms like LinkedIn, noting the unpredictability of the biotech landscape even after recent funding successes.
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