Unity Biotechnology and Mammoth Biosciences are both turning toward cost-saving measures, prompting layoffs at both companies.
Unity’s restructuring comes along with 36-week results from its phase 2b Aspire trial that weighed its investigational eye treatment UBX1325 against Regeneron’s blockbuster Eylea in patients with diabetic macular edema who had poor vision despite prior treatment. Previously, a 20-week readout in March sent stocks spiraling when it was reported that Unity’s offering failed to match Eylea.
While UBX1325 was noninferior to Eylea at “most” time points through 36 weeks, according to the newly unveiled complete results, further development of the BCL-xL inhibitor could “benefit from the capabilities of a company with an existing ophthalmic franchise,” CEO Anirvan Ghosh, Ph.D., said in a May 5 release.
“We are exploring partnerships so that this program can continue to be advanced as a potential new treatment,” Ghosh said.
Unity is also considering a full range of strategic alternatives that could include a sale or divestiture of assets, a merger or winding the company down altogether, according to the release. Through a “revised operating plan” that looks to scout these alternatives while reducing operational cash burn, the company plans to completely eliminate its headcount with layoffs "affecting all of its workforce," while making “consulting arrangements” to help wind down the Aspire study.
CEO Ghosh, plus Chief Financial Officer Lynne Sullivan and Chief Legal Officer Alex Nguyen are to transition into consulting roles to support the evaluation of alternatives and “orderly transition” of management roles, Unity said.
Unity isn’t alone in the staffing shake-up. Mammoth Biosciences, also working on a “strategic alignment,” is laying off 24 staffers as it restructures, co-founder and CEO Trevor Martin confirmed with Fierce Biotech in an emailed statement.
California-based Mammoth said it was in a “uniquely strong” financial position and is focusing efforts on “ensuring we have the right organization to drive forward our internal programs to the clinic, support our partnerships and push forward innovative research to develop new curative therapies,” according to Martin.
“These updates position Mammoth Biosciences to effectively deliver on our mission—to develop life-changing therapies for patients,” the CEO said.
Gene editor Mammoth recently nominated its first clinical development candidate, a potential one-time treatment for patients with high-triglyceride diseases such as familial chylomicronemia syndrome and severe hypertriglyceridemia. The therapy uses Mammoth’s ultracompact CRISPR in vivo gene editing system that last year caught the attention of Regeneron. The two companies struck a deal worth $100 million upfront that sees Mammoth’s gene editing systems link up with Regeneron’s adeno-associated viral vectors.