Repare Therapeutics Announces Major Restructuring with 75% Staff Reduction

Repare Therapeutics, a biotechnology company focused on precision oncology, has unveiled a significant restructuring plan that includes laying off 75% of its workforce and the departure of its chief medical officer. This move comes as part of the company's efforts to streamline operations and focus on key clinical assets.

Massive Layoffs and Executive Departure

In a Securities and Exchange Commission filing on Monday, Repare Therapeutics disclosed that it will be reducing its headcount by 75%, a decision that follows a previous 25% reduction announced in August 2024. The company, which had 179 full-time employees as of February 2024, will see a dramatic decrease in its workforce, with the majority of cuts affecting research and development staff.

Among the high-profile departures is Chief Medical Officer Maria Koehler, M.D., Ph.D. The company expects to complete the redundancies by the fourth quarter of this year, with initial severance costs estimated at $7.3 million. Additionally, Repare will allocate $1.4 million for one-time employee retention costs for key executives, including Chief Financial Officer Steve Forte and Chief Scientific Officer Mike Zinda.

Financial Impact and Strategic Refocus

The restructuring is projected to result in annual savings of approximately $21 million for Repare Therapeutics. This significant cost reduction aligns with the company's revised strategy to concentrate on its phase 1 clinical assets, specifically the PLK4 inhibitor RP-1664 and the Polθ ATPase inhibitor RP-3467.

RP-1664 is currently undergoing evaluation as a monotherapy in adolescent patients with TRIM37-high solid tumors, with plans to expand the study to patients with pediatric neuroblastoma later this year. Concurrently, RP-3467 is being tested in a phase 1 study, both as a monotherapy and in combination with Lynparza, targeting patients with various cancers including ovarian, breast, castration-resistant prostate, and pancreatic adenocarcinoma. Results from this study are anticipated in the third quarter.

Portfolio Optimization and Pipeline Adjustments

The restructuring follows Repare's January announcement of a portfolio review, which led to the discontinuation of certain drug candidates. Most notably, the company halted development of the combination therapy Lunre+Camo, which consisted of the PKMYT1 inhibitor lunresertib and ATR inhibitor camonsertib.

CEO Lloyd Segal emphasized the company's new direction, stating, "We are focused on achieving near-term inflection points for our phase 1 clinical assets, RP-1664 and RP-3467, both of which have the potential to address significant unmet patient needs and deliver important catalysts in 2025." Segal added that these changes, along with other initiatives, are intended to provide a foundation for meaningful value creation.