Appia Bio Shuts Down, Highlighting Ongoing Challenges in Biotech Funding

Cell Therapy Startup Closes Before Reaching Clinical Trials

Appia Bio, a California-based cell therapy company, has announced its closure after four years of operation. The company, which was developing off-the-shelf cell therapies for oncology indications, reached the brink of filing an Investigational New Drug (IND) application but ultimately ran out of funding before entering clinical trials.

JeenJoo Kang, CEO of Appia Bio, shared the news in a LinkedIn post, stating, "Without further funding available to test in patients, heartbreakingly, we had reached the end of our road." The company's shutdown underscores the ongoing challenges faced by biotech startups in securing adequate funding to advance their research into clinical stages.

Industry-Wide Trend of Biotech Closures

Appia Bio's closure is part of a broader trend in the biotech industry, with several companies shutting down operations in recent months. Notable examples include:

• Abata Therapeutics, which closed due to the challenging fundraising environment
• NextRNA Therapeutics
• Oncternal Therapeutics
• National Resilience
• Vor Bio
• iTeos Therapeutics

These closures highlight the difficult financial landscape for biotech companies, particularly those in early stages of development.

Impact on Partnerships and Future Developments

Appia Bio's shutdown affects its collaboration with Kite Pharma, a subsidiary of Gilead Sciences. In August 2021, the two companies had entered into a partnership valued at up to $875 million to develop stem cell-derived cell therapies for hematologic cancers. This partnership ended in 2024, prior to Appia's closure.

The loss of promising startups like Appia Bio raises concerns about the future of innovative cell therapies and the broader impact on the pharmaceutical industry's pipeline. As funding challenges persist, the industry may see a slowdown in the development of novel treatments, particularly in complex and costly areas such as cell therapy.