Last August, Sana Biotechnology opened a new 80,000-square-foot manufacturing plant in an old AT&T call center in Bothell, Washington. The Seattle-based startup, which manufactures engineered cells used as medicines for cancer, diabetes, and autoimmune disease patients, had been working on the project for more than a year. The facility was expected to create hundreds of new jobs and bring manufacturing in-house.
Before Bothell, Sana planned to make a larger factory in Fremont, California. Well, now it looks like Sana is bailing on its in-house factory future and outsourcing the work.
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According to the Puget Sound Business Journal, the company will rely on contract manufacturers. Sana said it will use contract development and manufacturing organizations (CDMOs) to make its cell and gene therapy products.
The company said these CDMOs have the capacity and understanding to meet its near-term manufacturing needs. While this is likely a short-term solution for the company, Sana says it is weighing several long-term alternatives.
The company reported a $44.6 million loss, primarily due to its efforts in Bothell. But setting up these factories is no easy task; they can typically take up to 20 months to get up and running due to stringent manufacturing standards.
Sana has faced some troubles along the way, including cutting some product development late last year, losing about 30% of its staff the previous year, and, most recently, it was sued by investors in March 2025.
Still, Sana shows promise, including a potential cure for type-1 diabetes using engineered cells. In June, the company shared encouraging results of a six month clinical trial that "suggest that a functional cure for type 1 diabetes without immunosuppression is possible."
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