4DMT Cuts 25% of Workforce Amid Accelerated Phase 3 Timeline

Key Takeaways

  • 4D Molecular Therapeutics has laid off 25% of its workforce to save $15 million annually.
  • The layoffs predominantly affect early-stage R&D roles, reflecting a strategic shift to fund deadlines for ongoing trials.
  • Despite cuts, enrollments for upcoming studies of the gene therapy 4D-150 have exceeded expectations, with results anticipated in early 2027.

Company Restructuring and Financial Strategy

4D Molecular Therapeutics (4DMT) has implemented significant layoffs, reducing its workforce by 25%, primarily impacting early-stage research and development positions. These changes are expected to save the company approximately $15 million per year and are part of a broader financial strategy to extend its cash reserves into 2028.

As of February, 4DMT employed 227 full-time staff, with 166 focused on R&D. In a recent post-market release dated July 2, the company indicated that the downsizing was essential to streamline operations amidst increasing costs related to accelerated timelines for its key trials. CEO David Kirn, M.D., emphasized the importance of this restructuring to uphold the firm’s commitment to delivering genetic medicines, particularly focusing on 4D-150 for wet age-related macular degeneration (AMD).

The company’s financial situation remains robust. Ending March with $458 million in cash, 4DMT is confident this sum will support upcoming results for 4D-150. This gene therapy utilizes an adeno-associated virus vector to deliver transgenes for aflibercept, a drug used to manage AMD. In the July announcement, 4DMT reported that patient enrollment for their first study has surpassed initial expectations, indicating strong interest from both investigators and potential participants.

Originally projected for late 2027, a topline readout from this North American trial is now anticipated in the first half of the same year. Meanwhile, a second global study was launched last month, also ahead of schedule, with results scheduled for the second half of 2027.

The recent layoffs are not the first instance of operational recalibration for 4DMT. Earlier in January, the company had already restructured by discontinuing gene therapy programs targeting two rare eye diseases, choroideremia and X-linked retinitis pigmentosa. This was part of a larger strategy to halt investments in various programs until more financing or partnerships could be secured.

As the company navigates a transition to commercial operations, the July 2 release reiterated that the layoffs are aligned with the decision to focus resources on advancing the late-stage pipeline. By streamlining operations, 4DMT aims to maintain its commitment to innovation in the genetic medicine sector while adhering to deadlines that are crucial for future developments in AMD treatment.

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