Bicycle Therapeutics Announces Major Restructuring Amid Genentech Partnership Termination

Bicycle Therapeutics, a UK-based biotech company, has unveiled significant organizational changes following the termination of its collaboration with Genentech. The restructuring includes a substantial workforce reduction and strategic cost-cutting measures aimed at extending the company's financial runway.

Workforce Reduction and Financial Restructuring

Bicycle Therapeutics announced a 25% reduction in its "current and planned workforce" as part of a broader initiative to cut spending by 30% over the course of its cash runway. The company, which had 305 employees split between the UK and US at the end of last year, expects to incur $5.3 million in severance pay and related charges, primarily in the third quarter of 2025.

Despite these upfront costs, the restructuring is projected to yield long-term savings. Bicycle anticipates that these measures will extend its cash runway into 2028, a significant improvement from the previous projection of the second half of 2027.

Genentech Partnership Termination

The restructuring announcement comes on the heels of Genentech's decision to terminate its partnership with Bicycle Therapeutics. The collaboration, which began in 2020 with a $30 million upfront payment from Genentech, had been a significant source of revenue for Bicycle, contributing $56 million to its coffers through the end of June 2025.

Genentech provided notice of termination in July, with the partnership set to officially end in August 2025. As a result of this development, Bicycle expects to recognize $6.5 million in remaining deferred revenue from the deal in the third quarter of 2025.

Focus on Internal Pipeline

In light of these changes, Bicycle Therapeutics is refocusing its efforts on its internal pipeline, particularly the development of zelenectide, a Nectin-4 drug candidate for metastatic urothelial cancer. The company plans to engage with the FDA in the fourth quarter of 2025 to discuss dose selection for a phase 2/3 pivotal trial and explore potential accelerated approval pathways.

This strategic pivot underscores Bicycle's commitment to advancing its proprietary programs and maximizing the potential of its unique technology platform in the face of changing industry partnerships.