AmplifyBio: Battelle Reacquires Failed Cell Therapy CDMO in Six-Month Liquidation

AmplifyBio, LLC, the West Jefferson, Ohio-based contract research and manufacturing organization focused on cell and gene therapies, filed for chapter 11 bankruptcy protection on May 16, 2025, in the U.S. Bankruptcy Court for the Southern District of Ohio after raising approximately $200 million in investor funding and accumulating $156 million in net losses over three years. Spun out of Battelle Memorial Institute in 2021, the company terminated all 212 employees and ceased operations in April 2025—one month before filing—with operations already closed at the petition date. Battelle, which had originated the business, reacquired substantially all assets through a $21.84 million credit bid after no competing bids emerged, while contributing an additional $3 million settlement fund for unsecured creditors. The case was confirmed on October 29, 2025. Cell and gene therapy investment fell 83% from $8.2 billion in 2021 to $1.4 billion in 2024.

Debtor(s)	AmplifyBio, LLC
Court	U.S. Bankruptcy Court, Southern District of Ohio
Case Number	25-52141 (lead case)
Petition Date	May 16, 2025
Confirmation Date	October 29, 2025
Effective Date	November 17, 2025
Buyer	Battelle Memorial Institute (credit bid)
Purchase Price	$21,840,000 (credit bid)
Settlement Fund	$3,000,000
Break-Up Fee	$175,000
Asset Marketing Agent	Hilco (Real Estate, Commercial Industrial, IP)
Prepetition Secured Debt	$28.07 million
Total Investor Funding	~$200 million

Debtor Entities

The chapter 11 cases encompassed two jointly administered debtor entities. AmplifyBio, LLC served as the lead case debtor, operating the core contract research and manufacturing business from its West Jefferson, Ohio headquarters. ADOC SSF, LLC, a wholly owned subsidiary of AmplifyBio, held the South San Francisco operations that were acquired from PACT Pharma in October 2022. The South San Francisco subsidiary had already been wound down as part of cost-cutting measures in late 2024, with that facility closed before the bankruptcy filing. The joint administration order was entered on May 19, 2025, consolidating the two cases for administrative efficiency while maintaining separate estates for claims purposes.

Company Background and Founding

AmplifyBio was launched in May 2021 as a spinout from Battelle Memorial Institute, the Columbus-based nonprofit research and development organization, to commercialize cell and gene therapy services. The business traced its preclinical contract research organization roots to 1979 when Battelle established the original research operation. The company started with approximately 125 scientists and technicians from Battelle and operated on a dedicated 30-acre footprint within Battelle's West Jefferson, Ohio campus. The business was designed as a drug development and commercialization partner for next-generation therapies, focusing specifically on cell and gene therapies, mRNA, and gene editing platforms.

The company pursued expansion following its founding. In January 2023, AmplifyBio secured up to $50 million in debt financing from Hercules Capital to accelerate its strategic plan, including growth of sites, technology, and service offerings. The company then announced a $150 million investment to build a new 350,000-square-foot manufacturing facility in New Albany, Ohio, with plans to create 263 new jobs.

In October 2022, AmplifyBio acquired select assets from PACT Pharma, including advanced characterization platforms, bioinformatics capabilities, 40 drug development experts, and a South San Francisco laboratory. The acquisition was intended to enhance cell and gene therapy characterization services and address a gap between the discovery phase and preclinical testing. PACT Pharma had ended a Phase 1 trial of its NeoTCR-P1 cell therapy in August 2022, and the sale to AmplifyBio provided capital while reducing operating expenses.

The company attracted an investor base that included Narya Capital, the venture capital fund founded by JD Vance in 2020, alongside Viking Global Investors, Hercules Capital, Battelle Memorial Institute, Decibel, GV, and Eli Lilly. Vance had raised $93 million for Narya with backing from Peter Thiel, Marc Andreessen, and Eric Schmidt, with Battelle itself serving as a limited partner. The fund focused on commercializing technologies developed at research institutions, with life sciences as a priority sector. Vance personally owned up to $100,000 in AmplifyBio non-public stock per SEC disclosures filed in connection with his political career.

With Eli Lilly, Decibel, GV (formerly Google Ventures), and Hercules Capital providing venture debt, the company raised approximately $200 million in total funding.

AmplifyBio operated an integrated service model built around three core pillars: end-to-end R&D services spanning discovery through commercial manufacturing, preclinical CRO services including pharmacokinetics, biodistribution, and toxicity testing, and flexible manufacturing infrastructure for cell and gene therapy production. At its peak, the company operated approximately 55 acres at its West Jefferson campus with roughly 240,000 square feet of facilities, the 350,000-square-foot New Albany manufacturing facility, and the South San Francisco laboratory acquired from PACT Pharma.

Path to Chapter 11

Persistent Net Losses and Revenue Scaling Challenges.

Despite investment, AmplifyBio did not achieve profitability. According to the First Day Declaration, the company incurred net losses over consecutive years: $26 million in 2022, $56 million in 2023, and $74 million in 2024—totaling $156 million over three years. The capital-intensive business model required ongoing investment in facilities, technology, and scientific talent, resulting in high fixed and variable costs. Revenue streams from contract research and manufacturing services did not scale quickly enough to offset these expenditures. The expansion of the New Albany manufacturing facility and acquisition of expertise from PACT Pharma required upfront capital outlays as revenue growth lagged.

The company's Manufacturing Enablement Center in New Albany, Ohio opened in Q1 2024 with Phase 1 of the 350,000-square-foot facility coming online. The facility included standalone B- and C-grade suites that could be configured for any modality and produce multiple lots simultaneously. Battelle CEO Lou Von Thaer attended the event.

Cost-Cutting Measures.

In late 2024, the company implemented restructuring measures. AmplifyBio closed its South San Francisco site and cut approximately 25% of its Ohio workforce. Management also sought a strategic investor or buyer for the company.

Lender Default and Loan Assignment.

By early February 2025, AmplifyBio was in default on its $50 million debt facility with Hercules Capital after the secured loan balance reached approximately $28 million. The company obtained emergency bridge financing through $6.1 million in convertible promissory notes from Battelle Services Company, Inc. (BSCI) and KAVRA entities in February and March 2025.

On April 14, 2025—one month before the bankruptcy filing—Hercules Capital assigned the prepetition secured loan to Battelle Memorial Institute. This loan assignment made Battelle the primary secured creditor ahead of the bankruptcy sale.

Operations Terminate Before Filing.

On April 4, 2025, AmplifyBio permanently closed and laid off all 212 employees. A WARN notice was received by the Ohio Department of Job and Family Services on April 15, 2025. A former employee subsequently filed suit alleging the company violated federal WARN Act requirements for providing 60-day written notice before mass layoffs at employers with 100 or more staff. The company denied having sufficient notice of the impending shutdown to comply with the requirement.

By the petition date on May 16, 2025, only 26 former employees had been retained as consultants to assist with the liquidation process. Operations had ceased more than a month earlier.

Capital Structure at Filing

The company reported $100-500 million in assets and $50-100 million in liabilities in its bankruptcy schedules. The asset base included the West Jefferson campus with approximately 55 acres and 240,000 square feet of facilities, laboratory and manufacturing equipment, and intellectual property developed over four years of operations.

DIP Financing

Battelle Memorial Institute provided debtor-in-possession financing of up to $2.5 million to fund chapter 11 administrative costs and wind-down expenses. The DIP facility carried a superpriority administrative claim with liens on all assets. The Interim DIP Order was entered on May 23, 2025.

The adequate protection package under the Final Cash Collateral Order included valid, perfected postpetition security interests on all property as replacement liens, plus Section 507(b) superpriority claims against the estates.

363 Sale Process

Battelle Stalking Horse Bid.

Battelle Memorial Institute, the company's original parent and now secured creditor following the loan assignment from Hercules Capital, served as the stalking horse bidder. Hilco Global marketed the assets including real estate, intellectual property, and machinery and equipment.

The Sale Motion was filed on June 12, 2025, and the Bidding Procedures Order was entered two weeks later on June 27.

U.S. Trustee Objection.

The U.S. Trustee objected to AmplifyBio's motion to approve the bidding procedures, raising concerns about Battelle's $20 million-plus bid structure. Despite the objection, the bankruptcy court approved the bidding procedures as proposed, allowing the sale process to proceed with Battelle as stalking horse.

Auction Outcome.

No qualifying topping bids were received by the August 15, 2025 deadline. Battelle Memorial Institute was designated the Successful Bidder and acquired substantially all assets via credit bid, reacquiring the business it had divested four years earlier when it spun out AmplifyBio. Battelle originated the preclinical CRO operations in 1979, spun out AmplifyBio in 2021, and reacquired the assets in 2025 after the company's shutdown.

Assets Sold.

The Battelle credit bid encompassed substantially all of AmplifyBio's assets across both debtor entities. The core assets included the approximately 55-acre West Jefferson campus with roughly 240,000 square feet of laboratory and manufacturing facilities, the equipment and fixtures used in preclinical research and cell therapy manufacturing, and the intellectual property developed during the company's four years of operations. The sale also included customer contracts, regulatory approvals, and other intangible assets. Hilco marketed the assets across three divisions: Hilco Real Estate for the physical property, Hilco Commercial Industrial for the equipment and machinery, and Hilco IP Services for the patent portfolio and other intellectual property.

A separate private sale of Pathfinder Oncology assets generated $178,000, which was paid to Battelle and applied to the prepetition loan obligations.

Battelle Settlement Agreement

On August 13, 2025, the Debtors, Battelle Memorial Institute, Battelle Services Company, Inc. (BSCI), and the Official Committee of Unsecured Creditors executed a settlement agreement that provided the framework for the chapter 11 plan:

The $3 million settlement fund replaced the need for ongoing DIP financing and provides the primary source of recovery for general unsecured creditors. Battelle's decision to waive its deficiency claim—the difference between its $28 million secured debt and the $21.84 million credit bid value—along with BSCI's waiver of its $3.16 million convertible debt claim, removed approximately $31 million in claims that would otherwise have competed for distributions.

Chapter 11 Plan of Liquidation

Classification and Treatment.

The confirmed plan established six classes of claims and interests:

The plan creates a Class 3 specifically for Battelle's claims, which were waived in full as part of the settlement agreement. General unsecured creditors in Class 4 will receive pro rata distributions from the $3 million settlement fund, with the exact recovery percentage depending on the total allowed claims pool. Equity interests and intercompany claims were cancelled without distribution.

Liquidating Trust.

The plan establishes a Liquidating Trust to administer remaining assets and claims, distribute the $3 million settlement fund to creditors, wind down estate affairs, and pursue any remaining causes of action. A Liquidating Trustee was appointed to manage trust operations, with an oversight committee established to oversee trustee activities. The trust will continue until all assets are liquidated and distributions are complete, with trust expenses funded from settlement funds and remaining estate assets.

Confirmation and Effective Date.

The Combined Disclosure Statement and Plan were filed together on September 12, 2025, with the disclosure statement approved just three days later on September 15. The plan supplement, containing the identity of the Liquidating Trustee and oversight committee members, was filed on October 1, 2025. The confirmation hearing was held on October 29, 2025, and the Confirmation Order was entered the same day. The effective date occurred on November 17, 2025, when the Liquidating Trust was established and the assets formally transferred.

The timeline from petition to effective date was six months. Operations had terminated before filing, and no topping bids were received in the sale process.

Releases.

Third-party releases under the plan are optional, with creditors able to opt in or opt out. Releases extend to Battelle, BSCI, and Hercules Capital, providing protection against claims arising from the prepetition period and the bankruptcy process. Administrative claims are paid in the ordinary course, with professional fee claims paid after court approval. The optional release structure allowed creditors to preserve potential claims while still participating in the settlement fund distribution.

Professional Retentions

Kasey Rosado served as Chief Restructuring Officer through Accordion Partners, LLC, managing the wind-down process and bankruptcy administration. The Official Committee of Unsecured Creditors was appointed on June 9, 2025, and retained White & Case LLP as primary counsel, Tucker Ellis LLP as local co-counsel, and Berkeley Research Group as financial advisor.

Key Timeline

Industry Context: Cell and Gene Therapy Investment Decline

Funding Decline.

AmplifyBio's filing came during a decline in cell and gene therapy investment. According to BioPharma Dive, cell and gene therapy funding dropped 83% from $8.2 billion in 2021 to $1.4 billion in 2024. Deal count fell from 122 venture rounds in 2021 to 39 deals in 2024, a 68% decline. The company attributed its closure to "scarcity of investor financing for early-stage biotech companies" and noted that market conditions had "shifted significantly since the company's 2021 founding."

CDMO Overcapacity.

Industry analysis indicates that CDMO capacity growth outpaced active clinical trials by more than two-to-one between 2019 and 2024. The analysis notes that CDMOs built for demand that did not materialize.

AmplifyBio and Sector Conditions.

AmplifyBio was founded in 2021 and announced a $150 million New Albany facility expansion in 2023, with Phase 1 opening in Q1 2024. The company said it closed because of scarcity of investor financing for early-stage biotech companies and market conditions that shifted after its 2021 founding.

Frequently Asked Questions

What is AmplifyBio and why did it file for bankruptcy?

AmplifyBio was a contract research and manufacturing organization (CDMO) focused on cell and gene therapies, spun out of Battelle Memorial Institute in 2021. The company filed chapter 11 after accumulating $156 million in net losses over three years, defaulting on its Hercules Capital loan, and failing to find a going-concern buyer before operations ceased in April 2025.

How much investor funding did AmplifyBio raise?

The company raised approximately $200 million from investors including Narya Capital (JD Vance's fund), Viking Global Investors, Hercules Capital, Battelle Memorial Institute, Decibel, GV, and Eli Lilly.

Who acquired AmplifyBio's assets?

Battelle Memorial Institute, which originally spun out AmplifyBio in 2021, reacquired substantially all assets through a $21.84 million credit bid. No competing bids emerged at auction.

How much will unsecured creditors recover?

Unsecured creditors will receive pro rata distributions from a $3 million settlement fund contributed by Battelle. The exact recovery percentage depends on the total allowed claims in Class 4.

What happened to AmplifyBio employees?

All 212 employees were terminated on April 4, 2025, one month before the bankruptcy filing. A former employee filed suit alleging WARN Act violations for failure to provide the required 60-day notice before mass layoffs.

What was JD Vance's connection to AmplifyBio?

JD Vance's venture capital fund, Narya Capital, was a key investor in AmplifyBio's $200 million funding. Vance personally owned up to $100,000 in AmplifyBio non-public stock per SEC disclosures. Battelle, which had spun out AmplifyBio, was also a limited partner in Narya Capital.

Why did investment in the cell and gene therapy sector decline?

Investment in cell and gene therapy dropped 83%, from $8.2 billion in 2021 to $1.4 billion in 2024. CDMO capacity growth outpaced clinical trial demand by more than two-to-one.

What happened to the South San Francisco facility?

AmplifyBio acquired the South San Francisco laboratory from PACT Pharma in October 2022 along with 40 drug development experts. The company closed the site in late 2024 as part of cost-cutting measures before the bankruptcy filing.

How long did the bankruptcy case take?

The case proceeded from petition (May 16, 2025) to effective date (November 17, 2025) in six months, and operations had ceased before filing.

What claims did Battelle waive in the settlement?

Battelle waived its deficiency claim of over $28 million (the difference between its secured debt and credit bid value). Battelle Services Company, Inc. also waived its $3.16 million prepetition convertible debt claim, removing approximately $31 million in claims that would otherwise compete with other unsecured creditors.

Who is the claims agent for AmplifyBio?

Epiq Corporate Restructuring, LLC serves as the claims and noticing agent. The firm maintains the official claims register and distributes case notifications to creditors and parties in interest.

Read more chapter 11 case research on the ElevenFlo blog.