Stories of Technology, Innovation, & Entrepreneurship in the Southeast

A company with close ties to Battelle Memorial Institute, one-half of the partnership with the University of Tennessee that manages Oak Ridge National Laboratory, has shut down after four years. In many respects, it’s an increasing sign of the times for biotechnology companies.

After permanently closing and laying off all 212 of its employees on April 4, AmplifyBio, which was both a Contract Research Organization (CRO) and Contract Development and Manufacturing Organization (CDMO), has now filed for bankruptcy. The start-up was launched by Battelle in 2021 with a focus on the research and development of next-generation therapies, including cell and gene therapies. The CDMO operated within Battelle’s West Jefferson, OH, campus, and was backed by Battelle and other outside investors. AmplifyBio’s closure comes only 14 months after the company officially opened its Manufacturing Enablement Center in New Albany, OH, which was aimed at creating a fully integrated development pathway for clients

In a message posted the day after it shut down without warning, the company posted on its website the following message: “Like any start-up, AmplifyBio’s growth strategy relied on meeting revenue targets and a supportive investor climate. At the time AmplifyBio launched, market conditions were favorable for early phase drug development. That market sector has experienced a significant shift over the last couple of years, leading to a scarcity of investor financing for early stage biotech companies, which greatly impacted the ability to grow.”

According to a recent report in BioPharma Dive, investment bank Jefferies analysts found biotech funding in May was down 57 percent, to just over $2.7 billion, compared to the same time last year. That sum was only slightly better than the nearly $2.6 billion raised in April — the worst haul in three years — and was also 44 percent lower than the average seen across the past 12 months.

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