December | Summary of 16 Biopharmaceutical Layoffs

In December, 16 pharmaceutical companies announced layoffs, representing a 33% increase compared to last year. Layoffs in the biotechnology and pharmaceutical industries are ongoing across companies of various sizes, as they continue to make strategic adjustments and streamline "non-core" resources to cope with current challenges.

Idorsia Reduces Costs, Lays Off 270 Employees

On December 2, Idorsia Pharmaceuticals announced that, in order to cut costs, it was considering global layoffs of up to 270 positions. The company is also looking to sell the global rights to its hypertension drug, aprocitentan.

Aprocitentan is a once-daily oral active endothelin receptor antagonist that inhibits the binding of ET-1 to ETA and ETB receptors. In March 2024, aprocitentan was approved in the U.S. under the brand name TRYVIO?. In June, the European Commission granted market authorization for the drug under the name JERAYGO?.

Idorsia was spun off from Johnson & Johnson in 2017 after J&J acquired Actelion for $30 billion, primarily interested in Actelion's key assets in pulmonary arterial hypertension. However, in September 2023, clinical trial results showed that 18% of patients on a high dose of the drug experienced mild to moderate fluid retention, leading J&J to return the rights to Tryvio to Idorsia for up to $343 million. In March this year, Tryvio received FDA approval. Recently, Idorsia has been in exclusive negotiations with an undisclosed company regarding the global rights to aprocitentan. The company will receive a $35 million exclusivity fee, extending its cash runway through 2025.

Alligator Lays Off 70% of Its Staff

On December 2, Alligator Bioscience announced a comprehensive strategic reassessment, resulting in a 70% reduction in its workforce. After the layoffs, the company will have 15 full-time employees. The layoffs will still need to be negotiated with the union and will primarily impact employees involved in discovery and other non-clinical roles. The restructuring is expected to reduce Alligator's annual operating expenses by approximately $5.9 million.

Agenus Restructures Operations and Fires Several Executives

According to WARN, Agenus announced a strategic operational adjustment and layoffs, the exact number of which is unspecified. The company is focusing its resources on its leading botensilimab/balstilimab (BOT/BAL) project, which has shown strong clinical activity in various cancers, including microsatellite stable colorectal cancer (MSS CRC).

Two Biotech Companies Merge and Lay Off Employees

According to Fierce Biotech, Boston-based Chroma and Cambridge-based Nvelop announced a merger on December 11. Due to redundancy and overlapping areas, the number of employees laid off is not specified. The merged entity, nChroma Bio, has secured $75 million in new financing. This funding, in addition to the cash held by both companies at the time of the deal, will provide several years of liquidity.

It will also help Chroma continue to develop its epigenetic editing platform and advance its lead candidate, CRMA-1001, into clinical trials with key data. CRMA-1001 is a liver-targeted epigenetic editing therapy designed to treat chronic hepatitis B and D co-infection.

Editas Lays Off 65% of Workforce Due to Lack of Partner for Sickle Cell Disease Drug

According to Bloomberg, Editas announced on December 12 that it would terminate work on its ex-vivo therapy, renizgamglogene autogedtemcel, due to the inability to find a partner for its sickle cell disease treatment. As a result, the company will lay off approximately 65% of its workforce, impacting several members of its management team, including Chief Medical Officer Baisong Mei.

The biotech company expects these adjustments to extend its runway until the second quarter of 2027. Going forward, Editas will focus its resources and expertise on developing in vivo CRISPR-editing assets.

Ring Therapeutics Lays Off Nearly 50% of Its Staff

On December 18, Ring Therapeutics announced a near 50% reduction in its workforce, focusing on its patented gene delivery platform, Anellobricks. "This platform offers exceptional scalability and the potential to transform gene medicine," the company stated in a letter to Endpoints. "As such, we have reduced our existing staff to ensure we have the right mix of skills and capabilities to continue advancing our pipeline as we move towards clinical development."

Novartis Closes Two Factories and Lays Off 330 People

On December 19, Novartis confirmed that it would close its MorphoSys factories in Munich and Boston, with plans to lay off about 330 employees. A company spokesperson stated that the decision was part of integrating all portfolio activities into Novartis and determining the longer follow-up required for pelabresib's approval pathway in myelofibrosis.

In February 2024, Novartis announced the acquisition of Germany's MorphoSys AG for €2.7 billion, focusing primarily on pelabresib—the fastest-developing BET inhibitor globally. In October, Novartis stated that after reviewing 48-week data on pelabresib for myelofibrosis, it would delay its plans to seek approval for the drug. In its third-quarter earnings announcement, Novartis said, "Longer follow-up is needed to consult with health authorities to determine the regulatory pathway for pelabresib."