Plexium Restructures to Focus on Protein Degrader Pipeline

Plexium, a San Diego-based protein degradation company, has initiated a strategic realignment of its resources to better support its advancing development stage pipeline. The restructuring involves staff reductions across various departments, affecting employees ranging from associate to senior and principal scientists.

Layoffs and Resource Reallocation

A company spokesperson confirmed to Fierce Biotech that Plexium has "enacted a plan to align internal resources to better support their advancing development stage pipeline while maintaining full drug discovery and platform technology capabilities." While the exact number of affected employees remains undisclosed, multiple staff members have shared news of their layoffs on professional networking platforms.

The impact of the restructuring has been significant, with one senior scientist expressing dismay at losing their position just as they were preparing for maternity leave. This move comes as a stark contrast to Plexium's recent history of expansion and collaboration.

Pipeline Focus and Clinical Progress

Plexium's decision to realign its resources is primarily driven by the need to support its pipeline, which is predominantly in the preclinical stage. The company's most advanced asset, PLX-4545, is currently in Phase 1 clinical trials. PLX-4545 is a molecular glue designed to degrade the transcription factor IKZF2, which plays a role in helping cancers evade the immune system by recruiting immunosuppressive regulatory T cells.

The company recently presented data on PLX-4545 at the American Association for Cancer Research meeting in April, following the initiation of dosing in the Phase 1 trial in December 2023. This progress indicates Plexium's commitment to advancing its lead candidate despite the organizational changes.

Industry Context and Competition

Plexium's restructuring comes at a time when the protein degradation field is seeing increased activity and competition. Notably, Novartis is also conducting a Phase 1 trial for its own IKZF2 degrader, targeting non-small cell lung cancer and melanoma patients who have received prior anti-PD-1/PD-L1 therapy. This trial, which began in May 2019, is expected to conclude around September of this year, potentially setting a benchmark for similar compounds in development.

The protein degradation sector has attracted significant attention and investment in recent years, with Plexium itself securing major partnerships with pharmaceutical giants Amgen and AbbVie in 2022, alongside a substantial $102 million funding round. However, the current restructuring suggests a shift in strategy, possibly in response to changing market dynamics or the need to optimize resources for key pipeline assets.