Appia Bio Shuts Down Before Reaching Clinical Trials Amid Biotech Funding Crunch

Appia Bio, a California-based cell therapy company, has shut down after four years in operation, joining a string of biotech closures in 20251245.

The company was developing off-the-shelf cell therapies for oncology and was close to filing an Investigational New Drug (IND) application, but ran out of funding before it could begin clinical trials2.

Appia Bio cited the inability to secure sufficient follow-on funding as the primary reason for shutting down, despite attempting a small extension round in early 202514.

Founded in 2020 and launched in 2021 with $52 million in Series A funding, Appia Bio’s leadership included former Kite Pharma personnel and Nobel laureate David Baltimore as board chair1.

A previous partnership with Kite Pharma (Gilead subsidiary) to co-develop stem cell-derived therapies for hematologic cancers ended in 2024, before the shutdown125.

Appia Bio’s closure reflects a broader trend in biotech, as multiple early-stage companies have halted operations in 2025 due to a challenging fundraising climate and increased financial headwinds25.

Industry experts warn that persistent funding challenges may slow the progression of novel treatments, particularly in complex and costly areas such as cell therapy2.

Sources:

1. https://www.biospace.com/business/kite-cell-therapy-collaborator-appia-shutters

2. https://www.noahai.co/discover/article/9665

4. https://firstwordpharma.com/story/5992192

5. https://www.fiercebiotech.com/biotech/kite-partnered-appia-bio-shuts-down-reaching-clinic-after-funding-runs-dry