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Arena BioWorks Shuts Down After Investors Pull Support in Biotech Downturn

Backers cite a deteriorating biotech market as the reason for dissolving the Bell Labs–style institute.

Overview

  • The investor group said in a press release it unanimously decided to dissolve the organization, allowing staff to move on.
  • Leadership says the institute spent about $100 million over two years after launching in January 2024 with high-profile recruits including cofounder Stuart Schreiber and CRISPR pioneer Keith Joung.
  • Arena launched with a $500 million commitment from wealthy backers such as Jim Breyer and Michael Dell, yet it closed with many efforts unfinished.
  • Executives say teams are evaluating how to continue the most promising oncology, immune disorder, and brain health projects, though no specifics have been disclosed.
  • Arena’s spinout-dependent model struggled as biotech financing tightened, with venture fundraising at $17.1 billion in the first nine months of this year versus $27.6 billion in 2022, and earlier retrenchment included shelving cell and gene therapy programs, laying off roughly 30% of staff, hiring former ARIAD CEO Harvey Berger in August to refocus, and slowing spending to preserve severance.