Generation Bio Cuts 90% of Workforce Amid Financial Struggles

Generation Bio, a Massachusetts-based biotech company, has announced a drastic reduction in its workforce, cutting 90% of its employees as it faces financial challenges and uncertain prospects for its lipid nanoparticle technology. The move comes as the company struggles to secure funding to advance its programs into clinical trials.

Workforce Reduction and Strategic Review

The company plans to implement the layoffs in stages through the end of October, significantly impacting its research and development organization. Despite the cuts, Generation Bio intends to maintain core R&D capabilities while it explores strategic alternatives.

CEO Geoff McDonough, M.D., stated, "While our delivery system is mature, our program data are early and we recognize the significant time and investment required to reach proof-of-concept in patients, as well as the uncertainty of extending our current cash runway."

Financial Position and Technology Focus

As of June, Generation Bio reported $141.4 million in cash reserves, which it expects to sustain operations "for the foreseeable future." The company has been developing a cell-targeted lipid nanoparticle (ctLNP) delivery platform, with a focus on various liver-related cell types and potential applications in autoimmune diseases.

Recent preclinical data showed promise, with a nonhuman primate study demonstrating significant knockdown of beta-2 microglobulin in T cells using a 0.5-mg/kg dose of ctLNP-siRNA over three weeks. However, the company acknowledges that substantial time and investment would be required to advance these early-stage results to clinical proof-of-concept.

Historical Context and Previous Restructuring

This is not the first time Generation Bio has faced setbacks and restructuring. The company went public in 2020 with a pipeline of gene therapies targeting the liver and eye. However, it encountered a major setback in its hemophilia A program in 2021, leading to a shift in focus beyond liver targets by 2023.

That pivot resulted in a previous workforce reduction of 40%, including the departure of the chief medical officer and chief development officer. The current, more severe cut underscores the ongoing challenges faced by the company in its pursuit of viable therapeutic candidates.