ADC Therapeutics Cuts 30% Staff, Closes London Facility, Refocuses Pipeline

Pharmaceutical Industry News Update: Layoffs and Restructuring Dominate 2024 Landscape

In a challenging year for the pharmaceutical and biotech sectors, numerous companies have announced significant layoffs and restructuring efforts throughout 2024. These moves come as firms grapple with pipeline setbacks, changing market dynamics, and the need to streamline operations in an increasingly competitive landscape.

Major Players Implement Cost-Cutting Measures

Several industry giants have announced substantial workforce reductions as part of broader cost-saving initiatives. Bristol Myers Squibb (BMS) revealed plans to cut approximately 2,200 jobs by the end of 2024, aiming to generate $1.5 billion in cost savings through 2025. The company has already laid off over 1,300 employees this year, with recent cuts affecting 195 staff members at its Lawrenceville, New Jersey sites.

Pfizer, facing a downturn in COVID-19 product sales, initiated a $3.5 billion cost-cutting program in October 2023. The company has since implemented multiple rounds of layoffs, including the recent termination of 150 employees at its Sanford, North Carolina facility and 60 at its Rocky Mount site. In May, Pfizer announced plans to reduce costs by an additional $1.5 billion over the next several years.

Novartis has also joined the trend, disclosing plans to eliminate hundreds of development jobs worldwide. The Swiss pharma giant recently laid off 29 employees in San Diego and will cut approximately 100 more positions as it winds down its development site in the area.

Biotech Firms Face Setbacks and Strategic Shifts

Smaller biotech companies have not been immune to the industry-wide challenges. FibroGen announced it would eliminate 75% of its U.S.-based workforce following the failure of two late-stage trials for its experimental drug pamrevlumab in pancreatic cancer. The restructuring will affect approximately 356 employees globally.

Vir Biotechnology revealed plans to lay off 25% of its workforce, eliminating roughly 140 roles across its operations. The company is shifting its focus away from COVID-19 and influenza research, instead prioritizing hepatitis B and D programs while moving into the cancer space through a deal with Sanofi.

Gene therapy company uniQure announced a significant downsizing, laying off 65% of its employees – a total of 300 people. The move came shortly after the company sold its Lexington, Massachusetts manufacturing facility to Genezen.

Impact on Research and Development

The widespread layoffs and restructuring efforts are expected to have a significant impact on research and development activities across the industry. Many companies are reprioritizing their pipelines, focusing resources on late-stage assets with the highest potential for near-term success.

Relay Therapeutics, for instance, laid off less than 5% of its 300-person workforce as part of efforts to streamline its research organization. The precision oncology company aims to save approximately $50 million annually through these measures.

Similarly, Rapt Therapeutics announced a 40% reduction in its workforce, affecting 47 people, as it seeks to conserve cash resources following a setback in its clinical program for zelnecirnon.

As the pharmaceutical and biotech sectors continue to navigate these challenges, industry observers will be closely watching for signs of recovery and the potential long-term effects of these widespread cost-cutting measures on innovation and drug development.