Bay Area biotech company lays off half its workers a year after raising $325M

"Arsenal Biosciences, a biotech startup based in South San Francisco, is laying off about half of its workers just a year after scoring a $325 million funding round. The cell therapy company is laying off 100 employees who either reported to its Oyster Point headquarters or worked remotely, according to a WARN filing on Tuesday. Arsenal's cuts are meant to extend the company's cash runway as it transitions from early-stage cancer research to clinical trials, spokesperson Amanda Breeding told SFGATE in a statement."

"The startup is currently running a study for its leading candidate, a cell therapy focused on kidney cancer. It also has two other prospects of its own, and two collaboration programs with pharma giant Bristol Myers Squibb. Cell therapy companies aim to reprogram cells to fight diseases and tumors, but they've have struggled over the past couple of years, as Fierce Biotech has closely documented."

Arsenal Biosciences is laying off roughly 100 employees, about half its workforce, with most departures effective November 14 and impacted roles including scientists, researchers, several directors and two vice presidents. The layoffs are intended to extend the company’s cash runway as the business shifts from early-stage cancer research into clinical trials. The company is running a study of a leading cell therapy candidate targeting kidney cancer, maintains two other internal prospects and has two collaboration programs with Bristol Myers Squibb. The cell therapy sector has faced funding pullbacks, austerity and job cuts across the Bay Area. Arsenal previously raised $220 million in Series B and $325 million in Series C funding from investors including Kleiner Perkins, Nvidia’s venture arm and SoftBank Vision Fund 2.

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