Biotech layoffs in 2024: Identifying common threads among affected companies

[Image courtesy of ipopba/Adobe Stock]

Companies across the industry have contributed to biotech layoffs in early 2024, driven by factors ranging from operational restructuring to strategic pivots and clinical trial failures, with major hubs like California and Massachusetts bearing the brunt of the impact. A recent analysis assembled with the help a machine learning technique known as clustering reveals a pattern of job cuts across various groups, from diversified biotechs to strategic pivots. 

1. Diversified biotechs seek operational efficiency

Companies within this cluster, including giants such as Illumina and Thermo Fisher Scientific but also smaller players like NanoString Technologies, encountered layoffs primarily as a result of operational reorganizations. Illumina’s significant layoffs were a part of a $100M cost-cutting initiative following the failed acquisition of cancer test maker Grail. Nano…

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  • March 7, 2024
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Key considerations for the FDA approval of zuranolone for postpartum depression treatment

Mixed-bag approval hit Sage hard but spared Biogen

Sage Therapeutics recently notched an FDA win for the neuroactive steroid zuranolone (Zurzavae) for postpartum depression (PPD). For major depressive disorder (MDD), however, the agency handed the drug a complete response letter. In the wake of the news, Sage’s stock is down 46% to $19.52, while BIIB, which jointly developed the drug, ticked up slightly to $270.34 over the past five trading days.

Sage’s zuranolone partnership with Biogen may soften the blow, said Emma Wille, healthcare analyst for Citeline. But it’s clear that the MDD failure was “a hit,” she noted. “MDD is a huge market, and a lot of key opinion leaders were very interested in this drug because of its novel mechanism and a short course,” Wille said, referring to its 15-day course of administration.

Zuranolone is now the newest rapid-acting option for a mood disorder

Traditionally, patients newly prescr…

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  • August 10, 2023
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