Cellares, a South San Francisco-based cell therapy manufacturer, is downsizing after Bristol Myers Squibb (BMS) terminated their partnership — even as the company reports record customer growth.
BMS confirmed the split, saying its evaluation found that Cellares' Cell Shuttle system couldn't meet the specific regulatory requirements needed to manufacture Breyanzi, one of its commercial CAR T-cell therapies. The company stressed the decision applied only to Breyanzi's established production process, not to Cellares' technology broadly.
Cellares CEO and co-founder Fabian Gerlinghaus addressed the fallout in a weekend LinkedIn post, calling it a customer-specific decision that nonetheless forces the company to "resize." He said the move means losing colleagues who helped build the company, while expressing gratitude for their contributions.
Cell Shuttle platform
The partnership had been a major win for Cellares, worth up to $380 million in upfront and milestone payments since BMS invested in 2024. It helped fuel the IDMO's expansion into Japan and Europe and supported its flagship Cell Shuttle platform — an automated, end-to-end manufacturing system the company says can replace the multiple facilities a conventional CDMO would need.
Despite the setback, Cellares points to broader momentum: the company says it has more than doubled its customer base since the start of 2026, added a $50 million investment from Prime Radiant Partners in June (bringing total funding to $327 million), and was recently selected for the FDA's PreCheck pilot program, aimed at speeding up regulatory review for domestic manufacturing sites.
Cellares currently runs automated facilities in South San Francisco and Bridgewater, New Jersey, with commercial GMP operations expected in 2027 — a milestone Gerlinghaus has tied to the company's planned IPO at the end of that year. He said recent conversations with customers have been reassuring, with several discussing expanded programs despite the BMS exit.