National Resilience, a manufacturing startup that has raised over $2 billion since its 2020 launch, announced Monday it will wind down six facilities across three states as the company restructures operations amid challenging market conditions.
In a letter to customers, CEO William Marth stated that the company's "capacity expansion has outpaced industry demand," prompting the decision to streamline operations. The company will focus resources on its main hub in Cincinnati and Toronto operations, both targeting "high-growth segments" such as cell-based medicines, biologics and aseptic drug products.
Financial Restructuring and Continued Operations
Despite the facility closures, National Resilience secured an additional $250 million in bridge financing from existing investors to support the restructuring effort. The company plans to pursue debt funding "to fuel longer-term growth plans," according to Marth's letter.
The startup is shedding three Massachusetts facilities in Bedford, Allston and Marlborough; two California plants in San Diego and Fremont; and one facility in Alachua, Florida. A National Resilience affiliate holding leases to those sites is "commencing legal proceedings to do that promptly and efficiently," according to a company spokesperson.
Notably, National Resilience itself is not filing for bankruptcy, though an affiliate that holds leases for the six manufacturing facilities is pursuing bankruptcy proceedings through what the company describes as "financial engineering."
Pandemic-Era Growth and Market Challenges
National Resilience emerged during the COVID-19 pandemic, conceived by Arch Venture Partners co-founder Robert Nelsen with ambitious plans to boost production capacity for innovative medicines including vaccines, genetic medicines and protein-based drugs. The company debuted with $800 million in initial financing.
The startup rapidly expanded its manufacturing network through acquisitions and partnerships, purchasing a Bluebird bio plant in North Carolina and a large Sanofi facility in Boston. The company formed strategic alliances with major pharmaceutical partners including Moderna for vaccine production, as well as AstraZeneca, Cargo Therapeutics and BridgeBio Pharma.
National Resilience announced more than $1.2 billion in venture financing in 2021 and 2022, along with contracts from federal agencies including the Department of Health and Human Services and Department of Defense.
Operational Adjustments Amid Industry Downturn
The restructuring comes during a prolonged sector-wide pullback that has particularly impacted gene and cell therapy developers. National Resilience has been rebalancing operations over recent years, implementing multiple rounds of layoffs.
In 2023, the company eliminated more than 200 employees in the Boston area and over 100 at a Florida facility. That same year, Resilience sold several facilities to a real estate group and leased them back to raise capital. The company cut an additional 120 staff at the former Bluebird North Carolina plant at the start of 2025.
The remaining operations will continue manufacturing activities, including GLP-1 drug production for Eli Lilly at the company's facilities that will remain operational.
