Cell Therapy Company Arsenal Biosciences Implements Strategic Restructuring

SOUTH SAN FRANCISCO, CA—September 18, 2025—Arsenal Biosciences, a clinical-stage cell therapy company, has implemented a significant reduction in its workforce, impacting approximately half of its employees. The restructuring comes nearly a year after the company secured a substantial $325 million in a Series C funding round.

The decision to condense resources was made to extend the company’s operational runway amidst a challenging biotech funding environment. The company, known for its well-funded status and backing from major investors like ARCH Venture Partners and Nvidia’s VC arm, now has a staff of about 127 employees. ArsenalBio plans to maintain its current sites in South San Francisco and Hayward, California.

Pipeline Focus

In a strategic shift, the cell therapy company will concentrate its efforts on its lead clinical asset, AB-2100, an autologous cell therapy currently in a Phase 1/2 clinical trial for renal cell cancers. Dosing of patients continues in this trial, and a decision on its future development is expected by the end of the year.

ArsenalBio is also moving forward with plans to file an Investigational New Drug (IND) application for AB-3028 for certain forms of prostate cancer by the end of the year. Additionally, a discovery-stage program, AB-7000, remains in development. Other assets, including the AB-1015 program for ovarian cancer, have been paused to streamline the company’s focus.

Partnerships and Future Outlook

ArsenalBio confirmed its ongoing collaboration with Bristol Myers Squibb, noting that a key milestone was achieved in January. The company’s research collaboration with Genentech, a member of the Roche Group, has been completed.

The restructuring is part of a broader trend in the biotech sector, where many startups are making difficult decisions to manage resources in a tight fundraising climate. The company continues to pursue early-stage work in applying artificial intelligence to immunology research.