The ongoing reckoning among biopharmaceutical companies that are running out of cash and unable to raise new funds – either because of a lack of near-term upcoming milestones or missed milestones – is leading to more companies laying off employees to save whatever money they have left, or shutting down completely. This trend is shifting, however, with some firms deciding to combine their resources and soldier on with existing cash for as long as they still can.
Finance Watch: Biopharma Reckoning Brings Restructuring Plans, Consolidation
Shutdowns, Layoffs, Mergers Abound
With cash preservation in mind, Rubius will dissolve, while EQRx, Impel, Cybin and Graphite cut jobs. Meanwhile, Jounce is restructuring and it plans to merge with Redx, yet the dually troubled firms MEI Pharma and Infinity will combine, while VBL will disappear in a reverse merger with Notable Labs.
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