Innovate and Leave Town: June Brings Job Gains and Layoffs for Life Sciences

The life sciences industry is growing rapidly, with more companies announcing expansions and job creations. At the other end of the spectrum, some companies have been forced to cut costs, cutting jobs along the way. For an update on job creation and layoffs in June, keep reading.

Job creations

Regenerate: One year later Regeneron announced plans a $1.8 billion expansion of its Tarrytown, New York facility, the land was thrown away. New York Democratic Governor Kathy Hochul announced the start of construction this will ultimately allow Regeneron to add at least 1,000 new full-time jobs.

Takeda: The global pharmaceutical giant Takeda announced it secure 600,000 square feet research and development and office space in a new build in Kendall Square in Cambridge. The bio-hub known as Genetown in the greater Boston area, MA remains a top destination for life science companies, and this new addition will only add to the hub. Takeda is already Massachusetts’ largest life sciences employer, with approximately 5,000 employees in the state.

Therapeutic Horizon: Work on the new state-of-the-art laboratory in Rockville, Maryland has already begun and the site is expected to be completed by 2024. The new building will provide the company with 192,000 square feet of space for its team, many of whom joined the company after its 2021 acquisition of rare disease company Viela Bio, headquartered in Gaithersburg, Maryland.

Evonik Industries: The German Evonik Industries, in partnership with the American government, invests over $200 million build a lipid manufacturing plant in the United States. The company chose a site in Lafayette, Indiana to support flexible lipid production. In its announcement, Evonik said the Tippecanoe site will strengthen the company for “future growth of novel mRNA therapies beyond COVID-19 vaccines,” as well as reinforce its “leading role as a as a strategic partner for innovative pharmaceutical companies around the world”.

Dismissals

Amarin: Amarin based in New Jersey announcement that a global financial and organizational restructuring would occur in the midst of the dynamic United States economy. The company hopes to cut operating costs by $100 million over the next year by reducing the US sales force by 90%, and its goal will be to focus on expanding its presence in Europe.

Vincerx Pharmacy: In California, the biopharmaceutical company Vincerx has announcement its intention to restructure its financial strategies and redirect its clinical focus. Full-time Vincerx employees will be reduced by 33%.

Athersys: Shares of Cleveland-based Athersys plunged after the company announced a strategic restructuring that will lead to the reduction of 70% of its workforce. Athersys has undertaken the restructuring to cut costs to prioritize its MultiStem programs, it said in a statement. Athersys said the job cuts, the majority of which are expected to be completed by the end of this month, will allow the company to reduce its cost structure and “become more attractive to financial and strategic partners.”

Atreca: The clinical-stage biotechnology company is reduce its workforce exceeds 25% and review its operating plan to take into account these cost reduction measures. The company job a net loss of $24.9 million in the first quarter of 2022, mainly due to research and development expenses, recorded at $17.1 million, and general and administrative expenses, recorded at $8.6 million .

Praxis Precision Medicines: Praxis announced unfavorable results of a phase II/III study of PRAX-114 in major depressive disorder (MDD), as well as the decision to focus on movement disorders and epilepsy. The press release stated that “the strategic realignment will result in a reduction in the company’s workforce and future operating expenses”, although the company did not specify what proportion of the workforce work would be deleted.