Another biotech company goes bankrupt

Recently, f5 Therapeutics, a biotech startup based in California, USA, announced its closure. The company’s founder, Gary Choy, recently posted on LinkedIn to mark the end of this passionate entrepreneurial journey.

f5 Therapeutics was a biotech company focused on targeted protein degradation technology. Over the past few years, Gary Choy led a team of about 10 employees to reshape drug discovery using its proprietary NExMods™ (Neosubstrate Expression Modulators) platform to identify and validate new disease targets.

The company specialized in molecular glue technology—a small molecule drug that induces disease-related proteins to be recognized and naturally degraded by the cell’s clearance system. This technology is believed to have the potential to target traditionally undruggable proteins and holds broad prospects in oncology, immuno-oncology, fibrosis, inflammation, and neurodegenerative diseases. In recent years, major pharmaceutical companies like Pfizer, Novartis, Roche, Gilead, and Eli Lilly have entered this field through various deals.

In his farewell message, Gary Choy reflected on the entrepreneurial journey: pitching projects to angel investors, venture capitalists, and pharma giants; applying for research grants; showcasing results at conferences; and receiving numerous honors. The company had received recognition and support from organizations and programs such as Servier’s FAST program, California Life Sciences (CLS) FAST program, JLABS, and Founders Corner VC.

However, despite a strong scientific foundation and ambitious R&D pipeline, none of f5 Therapeutics’ projects advanced to in vivo studies and the efforts were halted. The company’s work on antibody-drug conjugates was also discontinued.

Gary Choy admitted that making the decision to shut down was not easy. He wrote on LinkedIn: “The past few years have been extremely tough for early-stage biotech companies. Funding for young platform startups has dropped to multi-year lows, and despite solid scientific foundations, dozens of startups have had to close. Under these circumstances, the company did its best and persisted as long as possible.”

The closure of f5 Therapeutics is not an isolated case but a reflection of the challenging environment currently facing the biotech industry. In recent years, the global biotech sector has experienced a prolonged and painful bear market. Geopolitical instability and fluctuations around regulatory policy changes have prompted many investors to withdraw from the industry. For early-stage biotech companies relying on continuous funding to operate, this capital winter can be fatal.

In conclusion, the demise of f5 Therapeutics once again highlights the high-risk nature of biotech entrepreneurship—despite innovative technology and solid scientific backing, startups remain vulnerable in the face of capital shortages and cyclical industry adjustments.

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