Rani Therapeutics and Sangamo Therapeutics are the latest biotech companies to implement substantial workforce reductions as part of their strategies to extend their financial runway and navigate the challenges of the industry.
Rani Therapeutics, headquartered in California, plans to reduce its workforce by 25% as part of a broader set of measures to prolong its cash resources. This maneuver is aimed at sustaining the company until the release of top-line results from a phase 2 trial of RT-102, a teriparatide-containing pill for osteoporosis, alongside the progression of a phase 1 study for RT-111, a biosimilar of Johnson & Johnson’s Crohn’s disease drug, Stelara. In addition to the layoffs, Rani will suspend the development of the neuroendocrine tumor pill RT-101, along with two preclinical candidates: RT-105, a TNF-α inhibitor antibody for psoriatic arthritis, and RT-110 for hypoparathyroidism.
“While we are discontinuing our RT-101 program, we aim to continue to develop RT-105 and RT-110 when we have the appropriate resources to do so.”
– Talat Imran, CEO, Rani Therapeutics
Also Read: September Layoffs: A Recap Of Recent Workforce Reductions In Biotech And Pharma
The company ended September with approximately $60.5 million in cash and anticipates that these measures will enable it to sustain operations through 2025.
“The restructuring announced today represents a further step towards simplifying the Sangamo organization and focusing on our epigenetic regulation therapies treating neurological diseases and our novel AAV capsid delivery technologies. Sangamo is deferring new investments in its Fabry and CAR-Treg programs beyond what is currently committed and is actively seeking collaboration partners or direct investors in both.”
– Sangamo Therapeutics
These changes are expected to reduce operating expenses by half, from the $240 million to $260 million range in 2023 to a more sustainable $115 million to $135 million range. This financial restructuring should allow Sangamo to maintain its operations at the renamed headquarters into the third quarter of 2024.
“At the same time, we will continue to progress our promising epigenetic regulation programs for neurological diseases and hope to soon share a breakthrough in our capsid delivery capabilities, which we believe could open the door for many other high-value and unmet diseases to be addressed with our editing capabilities.”
– Sandy Macrae, Ph.D., CEO
The biotech industry remains dynamic and requires adaptability in response to evolving circumstances, leading companies like Rani and Sangamo to make strategic decisions to ensure their long-term sustainability and focus on promising areas of research and development. These measures come as part of a series of actions and adjustments within both companies over the past year, reflecting their commitment to aligning with the changing landscape of biotechnology.
