Tempest Therapeutics Cuts 80% of Workforce Amid Strategic Review

Tempest Therapeutics, a California-based biotech company, has announced a significant reduction in its workforce as part of a broader strategic review. The company is laying off 21 of its 26 full-time employees, representing approximately 80% of its staff, in a move to extend its limited cash reserves and explore potential partnerships or acquisitions.

Workforce Reduction and Financial Implications

The layoffs, set to be completed by April 30, 2025, are expected to cost Tempest about $1.5 million, primarily in severance payments. This drastic measure comes as the company grapples with financial constraints, having reported a net loss of $41.8 million and an accumulated deficit of $207.1 million as of December 31, 2024. Tempest's cash and cash equivalents stood at $30.3 million at the end of last year, which analysts at William Blair noted was only sufficient to cover "start-up costs" of a Phase III trial for its lead candidate.

Strategic Alternatives and Pipeline Focus

Tempest is actively exploring strategic alternatives to advance its clinical-stage programs and maximize stockholder value. The company's primary focus is on amezalpat, a PPAR α antagonist that has received FDA orphan drug and fast track designations for hepatocellular carcinoma (HCC). Tempest considers amezalpat "Phase 3-ready" and is seeking ways to move the drug into late-stage development.

In October 2024, Tempest announced a partnership with Roche to study amezalpat in combination with Tecentriq (atezolizumab) and Avastin (bevacizumab) for the treatment of unresectable or metastatic HCC. This collaboration remains a key element of Tempest's strategy as it navigates its current challenges.

Additional Pipeline Developments

Despite the workforce reduction, Tempest continues to make progress with other pipeline candidates. The company recently reported that the FDA has granted orphan drug designation to TPST-1495, an inhibitor of prostaglandin signaling, for the treatment of familial adenomatous polyposis, an inherited syndrome associated with cancer development.

As Tempest weathers this period of uncertainty, the biotech industry watches closely to see how the company will navigate its financial challenges and whether it can secure the partnerships or funding needed to advance its promising pipeline.