Restructuring

Public Company Edition: Stock valuations are falling due to political, economic and regulatory uncertainty, resulting in fewer large public offerings, more alternative financings and cost cuts. Carisma, Tenaya, BioAtla, Arbutus, Nkarta, Alector and Adaptimmune announced layoffs.

Public Company Edition: Cargo suspended development and cut 90% of its workforce to focus on strategic alternatives, while Pyxis and Kiromic laid off or furloughed employees. Also, Pfizer sold its remaining Haleon shares for $3.3bn, Galderma sold $1bn in bonds and other financings.

Restructuring Edition: Biopharma companies used fourth-quarter updates to reveal job and program cuts to conserve cash, including Sutro, Agenus, Coherus, Inozyme and Atea. Also, Vincerx’s reverse merger was terminated and Vaccinex, Oncternal, Syros plan to voluntarily delist.

Pharma revenues are going to fall this year as a result of deeper generic competition for the German group’s top-selling drug, Xarelto, but it should return to growth from 2027 onwards.

Public Company Edition: BridgeBio Oncology Therapeutics will merger with a SPAC and raise $450m. Also, BridgeBio Pharma priced $500m in notes and Solid grossed $200m in a follow-on offering, while Idorsia restructured debt and a deal after a planned transaction fizzled out.

Norwegian firm BerGenBio, Lava of the Netherlands and Poland’s Ryvu are all weighing up diverse options to maximize shareholder value and stay alive, including licensing agreements and mergers.

Most biopharma firms that went public in the US in 2024 had a strong start, but by year-end many were trading in negative territory and in 2025 most are below their IPO values, raising questions about IPO prospects in 2025.

Restructuring Edition: Third Harmonic cut its workforce by half based on positive Phase I data for THB335. Also, encouraged by early Phase IIa results in alopecia areata, Q32 Bio is focusing on bempikibart. In addition, X4, Turnstone, Fractyl, Cargo and others recently revealed layoffs.

CEO Christopher Viehbacher has said repeatedly that Biogen will build its pipeline internally and through deals, and Grogan reshuffled the research organization with that in mind.

Sage’s board of directors initiated a search for strategic alternatives, which could include a sale of the company, but the board rejected a buyout bid from Biogen, its partner on the PPD drug Zurzuvae.