Instil Bio makes shock move: Shuts down UK operations and slashes jobs

Instil Bio, Inc., a clinical-stage biopharmaceutical company headquartered in Dallas, Texas, is undergoing a significant restructuring that includes the closure of its Manchester, United Kingdom, operations and a complete workforce reduction in that region. This move comes as part of the company’s broader strategy to optimize costs and focus on high-impact projects in more strategically advantageous locations. The company now anticipates that the shutdown of its UK operations will be completed by the end of 2024, an extension from the earlier projected timeline of mid-2024.

The decision, approved by Instil Bio’s Board of Directors on September 1, 2024, is set to result in restructuring costs of up to $5.5 million. This includes asset impairment charges, employee termination costs, and contract termination expenses. The company has also indicated that there could be additional unforeseen costs as the restructuring progresses. The closure aims to reallocate resources more effectively to the company’s critical research and development areas.

Instil Bio’s Strategic Focus on High-Impact Collaborations

As part of its new strategy, Instil Bio has entered into a significant collaboration with a partner experienced in cell therapy manufacturing. The collaboration involves preclinical manufacturing feasibility studies for its ITIL-306 program, a next-generation TIL therapy designed for multiple solid tumors. The feasibility studies, conducted in China, may lead to clinical trials for non-small cell lung cancer (NSCLC) patients if the results are promising. The company is also considering transitioning the ITIL-306 program’s manufacturing and clinical development to the United States based on the outcomes of these studies.

The closure of UK operations marks a shift in Instil Bio’s operational focus, concentrating its efforts on more feasible clinical settings and leveraging collaborations that can accelerate its path to market for innovative cancer therapies. John Smith, a biotech industry analyst, commented that Instil Bio’s move is a “calculated risk,” allowing the company to navigate the challenging landscape of biotechnology funding and regulatory requirements by shifting its focus to more cost-effective and high-impact areas.

A Leaner Instil Bio Poised for Growth?

By shutting down its UK facilities, Instil Bio is aligning its resources toward high-growth opportunities, such as its recent agreements to develop and commercialize novel antibodies targeting PD-L1 and VEGF in collaboration with ImmuneOnco Biopharmaceuticals. This agreement could bring up to $2.1 billion in milestone-based earnings for ImmuneOnco. The company is also exploring new licensing agreements and potential acquisitions to expand its portfolio of novel therapeutic candidates, which aligns with its leaner, more agile approach to drug development.

Instil Bio’s management remains optimistic about these changes. The company recently secured a 15-year lease with AstraZeneca Pharmaceuticals for a facility in Tarzana, California, further solidifying its presence in the United States and aligning with its broader business interests. This facility will serve as a critical base for the company’s efforts to advance its research and development initiatives and may provide operational synergies with its current and future projects.

Despite the significant workforce reduction and facility closure in the UK, Instil Bio’s strategic pivot may position it for future growth in an increasingly competitive field. The company continues to have a robust cash position, which should provide a runway beyond 2026, allowing it to explore new opportunities in the development of cutting-edge cancer therapies.