Layoff Shadows Continue in Biopharma: August 2024 Roundup
Repare Therapeutics
Developer of Tumor Therapeutic Drugs
BioMarin Pharmaceutical
Gene Therapy Developer
Genentech
Pharmaceutical R&D Manufacturer
Source: PharmaBlock
Author: Huanmu Editor: Vitamin
Affected by the downward pressure of the global economy and the capital winter in the biopharmaceutical industry, layoffs in the biopharmaceutical sector have become increasingly common. Reasons for layoffs include mergers and acquisitions, product development failures, business restructuring, reducing management costs, and more. In August 2024, some companies are tightening their belts and proceeding with layoffs. Details...As shown in the table below.
August 30
According to a filing by the U.S. Securities and Exchange Commission (SEC),BioMarinAbout a week after announcing a senior management reshuffle, this biotechnology company is laying off employees, cutting approximately 225 jobs globally. Affected employees were notified on August 28, and the layoffs are expected to be largely completed by the end of this year.
BioMarin also carried out layoffs in May. According to a document filed with the U.S. Securities and Exchange Commission (SEC) in May, this round of layoffs impacted approximately 170 employees globally and is expected to be largely completed by the end of July. It was mentioned in the PharmaDJ May summary article on pharmaceutical company layoffs:【Pharmaceutical Companies' Layoff风波 Again in May】Summary。
According to the latest documents, the recent layoffs are related to BioMarin's restructuring, the updated strategy for the hemophilia gene therapy Roctavian, and the discontinuation of development for BMN 293 (a preclinical gene therapy for a subtype of hypertrophic cardiomyopathy).
August 29
Repare TherapeuticsThe company announced that it would lay off approximately 25% of its workforce, with the majority coming from the preclinical team. Repare stated that the layoffs are related to the company’s strategic reprioritization of R&D efforts to focus on advancing the portfolio of clinical-stage oncology projects.
According to the announcement, the company expects total non-recurring cash payments related to layoffs in the third quarter to be approximately $1.5 million to $2 million. The company noted that it anticipates annual savings of about $15 million, which will extend its cash flow into the second half of 2026.
August 29
Biotechnology Company基因泰克(Genentech)Repare Therapeutics to Lay Off 93 Employees at South San Francisco Headquarters Positions affected include engineers, managers, analysts, and vice presidents, with the most significant cuts impacting scientist roles. According to the notice, the layoffs will take effect on October 8.
This is Genentech, Inc.'s second round of layoffs in 2024. In April this year, a company representative confirmed that the company would lay off approximately 3% across multiple departments, with more than 400 jobs expected to be affected.
Earlier this month, Genentech announced it would reallocate its investment in cancer research, closing its cancer immunology group.
August 27
Reuters reported, citing the Swiss newspaper NZZ,BayerLayoffs are underway, this time inBasel, SwitzerlandBayer's international headquarters for consumer health in Basel will cut approximately 150 jobs. Among the 1,000 employees in Basel, the layoffs will mainly affect the consumer health division and the administrative functions supporting this division, and will take effect in 2025.
Earlier this month, the company released its second-quarter earnings report, where CEO Bill Anderson stated that the consumer health division had "returned to growth," with sales increasing by 5.3% to reach $1.59 billion.
Basel Layoffs Are the Latest in Bayer's 2024 Layoff Plan: In March This Year, the Company Cut Nearly Half of Its Executive Team, Reducing It from 14 to 8 People. In May, the Company Laid Off Another 1,500 Employees, Most of Whom Held Management Positions.
August 27
According to the Worker Adjustment and Retraining Notification filed in Massachusetts, the gene-editing startupTome BiosciencesWill lay off 131 employees, nearly all of its workforce. The layoffs will take place from November 1 to November 14.
In a statement to Endpoint News, Tome CEO Kakkar declined to provide more details about the restructuring, such as whether a small team will remain to manage the company while it winds down operations.
August 22
Precision Oncology CompanyAadi BioscienceAnnounced that in order to maximize commercial operations while maintaining cash flow, 80% of R&D staff will be laid off.
Documents submitted to the U.S. Securities and Exchange Commission (SEC) show that by the end of the fourth quarter, Aadi will lay off 22 employees, accounting for 32% of its total workforce. Earlier this month, documents were filed with theSECA document shows that as of June 30, Aadi had 70 full-time employees, including 48 R&D staff. It is unclear whether Aadi has laid off employees since June or whether the company plans to cut more jobs beyond the 22 mentioned in the August filing. The previous document mentioned a 32% layoff, but it is now unclear whether layoffs occurred after June, causing the percentage to increase to 80%.
Aadi Announces Suspension of PRECISION1 Trial Evaluating Sirolimus Albumin-Bound Nanoparticles in Patients with Solid Tumors Harboring TSC1 or TSC2 (Tuberous Sclerosis Complex Genes) Inactivating Alterations
August 19
Less than a week after its midomafetamine (MDMA) capsule for the adjunctive treatment of post-traumatic stress disorder failed to gain approval,Lykos TherapeuticsAnnounced that it will lay off about 75% of its workforce as part of a restructuring. According to STAT News, prior to the layoffs, Lykos had approximately 100 employees.
On August 9, the FDA issued a complete response letter for the midomafetamine (MDMA) capsule, stating that Lykos's New Drug Application (NDA) could not be approved based on the data submitted to date. At an advisory committee meeting in June, the FDA's Psychopharmacologic Drugs Advisory Committee voted 10 to 1 against recommending this treatment, citing that its risks outweighed the benefits. For more details, see the previous article by PharmaDJ:Lykos Cuts 75% of Workforce! "One Drug Fails, Thousands Suffer," Layoff Scenarios in Pharmaceutical Companies Under FDA Approval。
According to the announcement on August 15, this restructuring aims to streamline the organization for clinical development and regulatory engagement as it prepares to resubmit the NDA for MDMA capsules.
August 15
Galera TherapeuticsAnnounced that the company will reduce its workforce to three people on August 31, as it is planning to close down. According toSECThe document submitted on the same day indicated that the Galera board approved a liquidation and dissolution plan on August 8, and laid off 22 employees on August 9, accounting for 70% of the total workforce.
Galera Focuses on Radiopharmaceuticals; Company Announces Halt of All Clinical Trial Activities and Candidate Product Development to Explore Potential Strategic Alternatives for the Business. It Will Now Prepare for a Shareholder Vote on a Dissolution Plan Around October 17.
According to Galera's announcement, as of June 30, the company had cash and cash equivalents of $10.7 million, which is expected to be used to cover operating expenses, including costs related to the dissolution, for at least the next 12 months.
August 15
In the spin-off of IlluminaGrailLess than two months later, the company announced layoffs of approximately 350 people. According toSECA document shows that, as of June 30, the number of layoffs accounted for approximately 25% of the total employees.
According to the document, Grail, which focuses on cancer diagnosis, will also cancel its recruitment plan for 2024. A spokesperson for Grail stated that approximately 150 vacant positions have been canceled.
According toSECThe document indicates that the layoffs are part of a restructuring plan aimed at reallocating resources to prioritize the company's core multi-cancer early detection business, while reducing overall expenditures as Grail works towards completing its registrational study and submitting the pre-market approval application for Galleri. According to the announcement, with the reduction in overall costs, Grail expects its existing cash flow to sustain operations from the second half of 2026, extended to 2028.
August 14
Viracta TherapeuticsIn a press release, the company announced that it would cut 23% of its workforce. This clinical-stage precision oncology company had previously filed on July 29th.SECThe document mentioned layoffs, stating that the mandatory layoffs would be completed this month. Viracta did not specify the number of layoffs, but a filing submitted to the SEC on May 9 showed that as of March 31, the company had 40 full-time employees, including 30 in research and development.
According to the press release, Viracta has reallocated its resources to prioritize its Epstein-Barr virus positive (EBV+) lymphoma program. The company noted that it received positive feedback from its meeting with the FDA, clarifying the potential regulatory pathway for nana-val (nanatinostat in combination with valganciclovir) for the initial registration in patients with relapsed or refractory EBV+ peripheral T-cell lymphoma.
August 14
Submitted on August 12SECIn the document,Boundless BioAnnounced "moderate layoffs." This clinical oncology company did not specify how many employees were laid off. However, a document filed with the SEC on May 13 showed that, as of May 6, the company had 72 full-time employees.
In a recent filing, the company announced plans to scale back early drug discovery efforts, including reducing staff, to extend its operational runway. Boundless noted that under the current operating plan, as of June 30, the company’s existing cash, cash equivalents, and short-term investments amounted to $179.3 million, sufficient to support operations until the fourth quarter of 2026.
This forced reduction occurred approximately five months after Boundless announced its IPO plans. According to a document filed on August 12, the net proceeds from the initial public offering were approximately $87.7 million after deducting underwriting discounts, commissions, and other issuance expenses.
August 13
According to August 7SECA document,FibroGenRepare Therapeutics Inc. will lay off 127 employees in San Francisco, following a previously announced workforce reduction of 75%, which includes these 127 employees. The biopharmaceutical company, focused on developing new cancer drugs, notified its staff on August 2.
According to the SEC filing, FibroGen expects to complete the majority of the layoffs by the end of the first quarter of 2025. The company estimates that it will incur non-recurring charges of $16 million to $18 million related to its overall plan to reduce operating expenses, primarily including severance pay, notice pay, accrued leave, payroll taxes, and employee benefits.
According to a statement released by FibroGen on July 31, the layoffs were due to two late-stage trials failing to meet their primary overall survival endpoints: a Phase II/III trial studying the company’s experimental drug pamrevlumab in combination with gemcitabine for first- and second-line treatment of patients with metastatic pancreatic ductal adenocarcinoma (mPDAC), and a separate Phase III trial evaluating pamrevlumab in combination with gemcitabine or FOLFIRINOX for pancreatic cancer. The announcement also noted that the company is implementing an "immediate and significant" cost-cutting plan to terminate the pamrevlumab program.
August 12
According to the warning notice on August 1,AjinomotoBiopharmaceutical Services Company, a contract development and manufacturing organization, will lay off 71 employees starting September 30. According to the company, this number represents 13% of its total U.S. workforce.
The company also reported that the layoffs are part of a larger plan to consolidate Ajinomoto's API production in Columbus, Ohio, a facility that came as part of the CDMO when it acquired Forge Biologics for $620 million in 2023.
August 12
August 7SECA submitted document shows that a biopharmaceutical company focused on novel small-molecule drugsAN2TherapeuticsWill lay off approximately 50%. Earlier submitted toSECA document shows that, as of February 29, the company had 41 full-time employees in the fields of clinical operations, clinical development, research, manufacturing, regulatory affairs, and quality.
In a recent document, AN2 noted that the layoffs should be largely completed by the end of 2024, including the departure of Chief Medical Officer Paul Eckburg on August 30. Eckburg will provide consulting services to the company for up to one year after that date.
According to the SEC filing, the layoffs are related to AN2's planned shift in focus following the termination of the EBO-301 study, which evaluated Epetraborole for the treatment of refractory Mycobacterium avium complex (MAC) lung disease. The layoffs are also aimed at further extending the company’s operational capital. In a press release on August 8, AN2 stated it plans to accelerate the research and development efforts of its boron chemistry platform.
August 8
According toSECA document submitted,Entero TherapeuticsEntero Therapeutics, a late-stage clinical biopharmaceutical company, will lay off all non-essential employees and terminate the employment of CEO James Sapirstein and President Jack Syage, although Sapirstein will continue as a consultant. In early June, the company had 16 employees and six full-time consultants.
In May this year, Entero was renamed Entero Therapeutics, formerly known as First Wave BioPharma. The company recently merged with ImmunogenX. According toSECOn August 2, ImmunogenX received a default notice demanding immediate payment of all debts, totaling approximately $7 million.
According to the document, Entero will relocate its office from Boca Raton, Florida, suspend non-essential R&D activities, and is exploring methods to maximize value for the company's stakeholders, including but not limited to raising funds and restructuring debt.
August 7
Gene and Cell Therapy CompaniesPrecigenAnnounced that it will cut more than 20% of its workforce. According to the announcement, these strategic changes significantly reduce the resources required for non-priority projects and will enable the company to focus on pre-commercialization efforts for PRGN-2012, its gene therapy for recurrent respiratory papillomatosis. As of the end of 2022, Precigen had approximately 190 employees.
August 6
Sumitomo PharmaAmerican Company(Sumitomo Pharma America) to Lay Off 53 Employees in Marlborough, Massachusetts. The company, whose U.S. headquarters is located in Cambridge, announced in March this year that it would cut 400 jobs in the United States.
August 6
Bristol-Myers Squibb(Bristol Myers Squibb) announced that it will lay off 2,200 employees this year. In a warning notice issued in July, the company disclosed that it would cut 117 jobs at its Lawrenceville, New Jersey location. This latest round of layoffs follows other workforce reductions that occurred in Lawrenceville this past March and May.
August 2
Gene Therapy CompanyuniQureAnnounced that the company will lay off 65% of its workforce, totaling 300 people, including Chief Operating Officer Pierre Carroz.
uniQure CEO Matt Kapusta said in the statement: "We have taken targeted actions to significantly reduce operating costs, streamline operations, and extend our cash runway." "These actions are designed to ensure we have the necessary resources to achieve critical milestones and drive shareholder value, while we work to deliver transformative medicines to patients in need."
August 2
Vir BiotechnologyAnnounced that the company will cut 25% of its workforce, eliminating approximately 140 positions in its operations department. This reduction is part of a significant shift in its R&D focus, as the biotechnology company will abandon its work on COVID-19 and influenza, as well as its T-cell based viral vector platform, to concentrate on hepatitis B and delta hepatitis projects, and enter the cancer field through a deal with Sanofi.
August 1
Arbutus BiopharmaIn its second-quarter earnings report, the company announced it would cut 40% of its workforce to focus resources on Phase II clinical research for chronic hepatitis B infections. Michael J. McElhaugh, Arbutus' interim president and CEO, stated in the announcement, "We have made the difficult decision to halt our hepatitis B drug research efforts and reduce our workforce, thereby extending our expected cash runway into the fourth quarter of 2026."
August 1
Headquartered in BostonHilleVaxThe company announced that it will lay off 41 employees, accounting for approximately 40% of its total workforce. In the announcement, the company stated that the layoffs are "aimed at preserving cash while maintaining core capabilities as the company explores the potential for continued development of its vaccine candidate." HilleVax was spun off from Takeda in 2021 to continue the development of its norovirus vaccine.
August 1
BayerThe company revealed in a warning notice released in July that the company willWhippany, New Jersey HeadquartersA further 70 jobs will be cut. This round of layoffs will take effect at the end of October. In May this year, Bayer announced that it would cut about 1,500 jobs by 2024, mainly eliminating managerial positions.
