Less than two years after emerging, Arena BioWorks is shuttering, citing the “adverse impact of biotech macro conditions” as the reason for the sudden closure.
A board representing the founding investor group of the Boston-based research institute has decided to shut down the center, according to a release a company spokesperson shared with Fierce Biotech.
“Since the conception of Arena BioWorks, biotech macro conditions have changed dramatically and the rate of change is accelerating with no clear turning point amid policy uncertainty and weak funding,” the release reads.
The investor group’s unanimous decision reflected “the only responsible action,” according to the release.
The privately funded biomedical research center launched in January 2024 with a hefty $500 million stemming from five billionaires. The company was aiming to accelerate the development of new medicines using artificial intelligence, specifically for diseases in areas like brain health, oncology and immunology.
The company emerged with the goal of bringing drug discoveries and company creation under one roof in hopes of reducing lengthy timelines and administrative holdups.
But just this August—less than 19 months after launching—the biotech laid off 30% of its workers. The workforce reduction, which impacted 22 employees, was part of the company’s deprioritization of cell and gene therapy work.
Now, the remaining staffers are receiving pink slips, a move that affects about 50 workers, according to Stat. The company’s investors are “committed to ensuring Arena’s employees are supported with generous severance agreements providing plenty of runway to find new employment and maintain benefits coverage,” the release reads.
Arena BioWork’s investors include Dell Technologies CEO Michael Dell plus a Subway sandwich shop heiress and a Boston Celtics owner, according to The New York Times.
Arena’s scientists plan on continuing work for “the most promising medicines” developed at the company, according to the release.