Major Layoffs and Restructuring Efforts

Numerous pharmaceutical and biotech companies have recently disclosed plans to reduce their workforces, citing various reasons from pipeline reprioritization to cost-cutting measures.

Biogen confirmed it will lay off an undisclosed number of employees from its research unit as part of efforts to "reinvigorate" its drug discovery operations. The move, aimed at improving agility and efficiency, is among the first major strategic decisions by new research head Jane Grogan, who joined the company in October 2023.

Galapagos announced a dramatic restructuring plan that will see the company split into two entities by mid-2025 and cut 40% of its workforce, affecting about 300 employees across its European operations. The reorganization will result in the closure of its French site and reduced staffing in Belgium. The company plans to create two separate entities: an innovative medicines specialist and a cell therapy company that will retain the Galapagos name.

Intellia Therapeutics revealed plans to reduce its workforce by approximately 27% as part of a reorganization program. The gene-editing company will focus its resources on high-value programs, specifically its investigational gene editors NTLA-2002 for hereditary angioedema and nexiguran ziclumeran for transthyretin amyloidosis. Intellia will discontinue development of NTLA-3001 for alpha-1 antitrypsin deficiency-associated lung disease.

Pipeline Adjustments and Clinical Updates

Several companies have announced significant changes to their drug development pipelines, including both advancements and setbacks.

Cassava Sciences disclosed that it will lay off 10 employees, representing about 33% of its workforce, following the failure of its Alzheimer's disease drug candidate simufilam in the Phase III RETHINK-ALZ trial. The company will also halt previously planned biomarker analyses of plasma samples from prior trials as part of its cost-cutting measures.

CytomX Therapeutics announced a 40% reduction in its workforce, affecting 46 employees, as it shifts focus to its clinical programs. The company's top priority for 2025 is the development of CX-2051, an antibody-drug conjugate for advanced metastatic colorectal cancer. CytomX also expressed uncertainty about the future of CX-904, a T-cell-engaging bispecific antibody being developed in partnership with Amgen.

Allakos revealed plans to cut 75% of its workforce and discontinue further development of AK006 following disappointing Phase I results in chronic spontaneous urticaria. This move comes just a year after the company slashed about half of its workforce and halted development of another drug candidate, lirentelimab.

These developments underscore the ongoing challenges faced by pharmaceutical and biotech companies as they navigate complex drug development landscapes, regulatory hurdles, and evolving market dynamics. The industry continues to adapt through strategic realignments, focused resource allocation, and pipeline optimization efforts.