Soon after taking the reins of Zymeworks (NYSE:ZYME), new chair and CEO Kenneth Galbraith has decided to sharpen the company’s focus and reduce the firm’s headcount.
To free up cash, the company plans to lay off at least one-quarter of its staff, including 10 members (50%) of its senior management team.
The Vancouver–headquartered company also intends to focus on executing its clinical development programs for the HER2-targeted bispecific antibody zanidatamab and ZW49, a HER2-targeted antibody-drug conjugate.
Ken Galbraith
In December, Zymeworks and its partner BeiGene (NSDQ:BGNE) announced the dosing of the first patient with zanidatamab in a South Korean study.
In the organizational shift, the company also intends to streamline its R&D activities while hunting for new potential partnerships and collaborations.
“Upon assuming my new role effective January 15th, we have moved quickly to review and confirm key strategic priorities for the near term and to establish a renewed, and smaller leadership team focused on accomplishing those priorities in a prompt, high-quality and cost-efficient manner,” CEO Kenneth Galbraith said in a statement.
The company’s stock fell 6.47% to $12.57 in late-morning trading.
On January 8, 2021, ZYME shares traded as high as $56.81.