Roche Restructures Spark Therapeutics, Cutting Nearly 300 Jobs in Philadelphia

Roche's gene therapy subsidiary, Spark Therapeutics, is undergoing a significant reorganization that will result in the loss of 298 jobs in Philadelphia by the end of 2025. This move, part of a broader restructuring effort, comes as the company faces challenges with key gene therapy assets and aims to streamline its operations.

Layoffs and Integration with Roche

The job cuts at Spark Therapeutics will be implemented in three phases, starting on May 9 and concluding on December 31, 2025, according to a Worker Adjustment and Retraining Notification notice. This reduction potentially halves Spark's workforce, with the Philadelphia Inquirer reporting a total of 337 employees being let go, representing more than half of the company's staff.

In addition to the layoffs, 310 Spark employees will be integrated into Roche's operations while remaining in Philadelphia. This integration aligns with Roche's January financial report, which outlined plans to incorporate some of Spark's operations into its broader pharmaceutical division. The Swiss pharmaceutical giant estimates restructuring costs at approximately $341 million.

Challenges in Gene Therapy Portfolio

The reorganization follows a strategic review of Spark's prospects by Roche, which acquired the biotech for $4.8 billion in 2019 to strengthen its gene therapy portfolio. However, two key Spark gene therapy assets have faced significant challenges since the acquisition:

1. Luxturna, an FDA-approved treatment for a rare and heritable form of blindness, experienced a 59% year-over-year sales decline in 2024.

2. SPK-8011, an investigational treatment for hemophilia A that showed promising results in 2018 with a 97% response rate, was shelved in December 2024 according to Spark's federal clinical trials page.

Future Focus and Previous Cuts

Despite these setbacks, Spark Therapeutics continues to conduct research in eye, liver, and neurodegenerative diseases. The company's website also lists the immune system, targeted gene therapy deliveries, and enabling technologies to optimize delivery and expand access for eligible patient populations as areas of interest.

This latest round of layoffs is not the first for Spark under Roche's ownership. In July 2024, the biotech underwent a workforce reduction and discontinued several early-stage programs. At that time, a company spokesperson stated that Spark was pivoting its strategy to "accelerate its pipeline and help bring more therapies to patients sooner," though the extent of those cuts was not disclosed.

As Spark Therapeutics navigates this significant restructuring, the pharmaceutical industry will be watching closely to see how these changes impact the company's ability to deliver on the promise of gene therapy and contribute to Roche's broader portfolio of innovative treatments.