Encoded Therapeutics Announces Major Restructuring to Advance Pipeline and Extend Cash Runway

Encoded Therapeutics, a San Francisco-based clinical-stage genetic medicines biotech, has announced a significant workforce reduction as part of a strategic restructuring effort. The company aims to extend its cash runway and focus on advancing its pipeline of innovative therapies for rare genetic disorders.

Workforce Reduction and Financial Strategy

Encoded has laid off 29% of its workforce, primarily affecting its technology and early-stage research and development functions. This move is expected to impact approximately 60 employees, reducing the company's total headcount to around 140. The restructuring is designed to extend Encoded's operational runway through the third quarter of 2026, allowing the company to achieve several key milestones in its development programs.

Pipeline Advancements and Clinical Trials

The extended cash runway will enable Encoded to focus on its lead program, ETX101, which is designed to address the underlying cause of Dravet syndrome, a severe form of epilepsy. The company anticipates completing dosing and sharing preliminary safety and efficacy data for ETX101 in the second half of 2025.

Additionally, Encoded is progressing towards filing an Investigational New Drug (IND) application for ETX201, a potential one-time treatment for Angelman syndrome. The company expects to submit this application in 2026.

Research and Manufacturing Developments

Encoded's research pipeline continues to expand, with the company planning to present data on its chronic pain and Alzheimer's disease programs in mid-2025. In a significant step towards vertical integration, Encoded announced that its internal Good Manufacturing Practices facility will be fully operational this quarter. This development will allow the company to manufacture all drug substance material for ETX101 and other pipeline programs in-house, potentially reducing costs and improving control over production processes.