Lyell Immunopharma Restructures Operations, Closes LA Facility Following ImmPACT Bio Acquisition
Lyell Immunopharma, a San Francisco-based biotechnology company, has announced significant operational changes following its acquisition of ImmPACT Bio last year. The company is closing its Los Angeles manufacturing facility and laying off 73 employees as part of a strategic realignment focused on advancing its CAR-T cell therapy pipeline.
Facility Closure and Workforce Reduction
Lyell will shut down the West Hills manufacturing facility in Los Angeles over the coming months, with layoffs set to begin on June 2, according to a Worker Adjustment and Retraining Notification Act (WARN) notice. The closure affects 73 employees, reducing Lyell's total workforce from approximately 300 to 225 people.
The company estimates it will incur expenses between $3 million and $4 million related to severance, benefits, payroll taxes, and other workforce reduction costs. These costs are expected to be recognized primarily in the second and third quarters of 2025.
Manufacturing Consolidation and Pipeline Focus
The decision to close the LA facility comes after Lyell successfully transferred the manufacturing of IMPT-314, a dual-targeting CD19/20 CAR-T cell candidate acquired from ImmPACT Bio, to its LyFE manufacturing center in Bothell, Washington. This move follows FDA clearance of an Investigational New Drug Comparability Protocol.
A Lyell spokesperson stated, "Our LyFE manufacturing center in Bothell, Washington is now manufacturing IMPT-314 to supply our ongoing Phase 1/2 clinical trial." The Bothell facility, completed in March 2021, is equipped to support both clinical trials and potential commercial launch of the CAR-T candidate.
Strategic Shift and Financial Outlook
Lyell's restructuring is part of a broader strategy to focus resources on its most promising CAR-T programs. The company has discontinued development of its former lead asset, LYL797, and its tumor-infiltrating lymphocyte program, LYL845, in favor of advancing IMPT-314 and the next-generation ROR1 candidate, LYL119.
Despite reporting a net loss of $343 million for 2024, Lyell projects that its net cash use of $175 million to $185 million in 2025 will provide a cash runway into 2027, supporting "multiple value-creating clinical catalysts." The company expects to initiate two pivotal clinical programs for IMPT-314: one in mid-2025 and another by early 2026.
References
- Lyell Cuts 73 Employees as Part of LA Site Closure
After moving the manufacturing of a CAR T drug that was part of its ImmPACT Bio acquisition to Washington, Lyell Immunopharma is closing its Los Angeles manufacturing facility, eliminating dozens of jobs there.
- CAR-T developer Lyell lays off 73 ImmPact staffers, shutters LA facility shortly after acquisition
Less than a year after purchasing private cell therapy company ImmPact Bio to help refresh its ailing CAR-T pipeline, manufacturing considerations have prompted Lyell Immunopharma to cut staff at its new subsidiary and mothball a California facility picked up in the deal.
Explore Further
What factors contributed to Lyell Immunopharma's decision to close the Los Angeles facility and restructure its operations?
How does Lyell's decision to focus on the CAR-T cell therapy pipeline align with current trends in the biotech and healthcare industry?
What impact could the layoffs and facility closure have on Lyell Immunopharma's long-term operational goals?
Are there similar restructuring trends happening within other biotechnology companies in response to recent acquisitions?
What role does the LyFE manufacturing center in Bothell, Washington play in Lyell's strategic realignment and future clinical trials?