Pharmaceutical Industry Roundup: Layoffs, Obesity Drug Data, and New Approvals

In a week of significant developments across the pharmaceutical landscape, companies are making strategic moves to streamline operations, advance clinical trials, and secure regulatory approvals. From workforce reductions to promising drug data and expanded treatment options, the industry continues to evolve rapidly.

Prothena Announces Major Restructuring Amid Strategic Review

Prothena Corporation has unveiled plans for a substantial workforce reduction, laying off 63% of its staff as part of a comprehensive restructuring initiative. The biotechnology company, which had 163 employees at the end of 2024, aims to concentrate its resources on key drug programs targeting Alzheimer's, Parkinson's, and transthyretin amyloidosis cardiomyopathy.

As part of this strategic overhaul, Prothena is working with financial advisors to evaluate a range of business options. The company anticipates ending the year with approximately $298 million in cash, factoring in expected milestone payments and upcoming study readouts for its pipeline candidates.

Zealand Pharma Reports Positive Data for Novel Obesity Treatment

Zealand Pharma has announced encouraging results from a Phase 1 trial of its experimental dual-acting obesity drug, dapiglutide. The study showed that participants lost an average of 12% of their body weight over 28 weeks with once-weekly injections of the compound.

Dapiglutide targets both GLP-1 and GLP-2 receptors, differentiating it from current market leaders like Wegovy and Zepbound, which focus solely on GLP-1. Zealand believes this dual mechanism may help address inflammation-related complications of obesity.

The trial reported mostly mild gastrointestinal side effects, typical of incretin-based therapies. However, two participants withdrew from the study due to adverse events. These early results position dapiglutide as a potential competitor in the rapidly expanding obesity treatment market.

Regulatory Milestones: New Approvals and Expanded Indications

The FDA has granted approval to Regeneron and Sanofi's Dupixent for the treatment of bullous pemphigoid, a rare skin condition predominantly affecting older adults. This marks the eighth approved indication for Dupixent, broadening its therapeutic reach.

In a pivotal trial, 18% of patients receiving Dupixent injections along with standard steroid therapy achieved sustained disease remission after 36 weeks, compared to 6% in the placebo group. The approval not only offers a new treatment option for bullous pemphigoid patients but also demonstrates the potential for reduced steroid use in management of the condition.

Meanwhile, Biogen has initiated a late-stage clinical trial evaluating Skyclarys in children aged 2 to 16 with Friedreich's ataxia. The study, named BRAVE, aims to enroll approximately 250 participants and will assess the safety and efficacy of the drug in slowing disease progression. This trial represents a significant step in Biogen's efforts to expand the label for Skyclarys, which was acquired through a $7.3 billion deal and is currently approved for patients 16 and older.