Sector News

BridgeBio strategy head departs amid company’s 2nd round of layoffs this year

April 30, 2022
Life sciences

BridgeBio’s chief strategy officer is headed for the exits as the company initiates a second round of layoffs this year to stave off biotech’s persistent bear market.

The layoffs were confirmed in an email from a company spokesperson who suggested that they were a result of “current market conditions.” The spokesperson would not confirm any details on the number of staff laid off or which units were impacted. Chief Strategy Officer Cameron Turtle is also departing the biotech, they said.

The layoffs are the ripple effects of the company’s striking phase 3 fail of its transthyretin amyloidosis med, acoramidis, which found that patients given a placebo reported a smaller decline in their six-minute walking distance over one year than treated patients. The results, announced in December 2021, were a head-scratcher. Nonetheless, Wall Street made sure the disappointment was felt, as BridgeBio’s shares plunged from more than $40 per share before the results were announced to $11.38.

As a result, the company has had to make do with the cards it’s been dealt, which evidently has meant layoffs and farewells. But with sparse details, it’s unclear where the company is trimming and how it plans to charge forward. The spokesperson said the company will provide a “fulsome update” in the coming weeks.

In a corporate presentation earlier this month, BridgeBio remained optimistic that acoramidis would still prove effective at reducing mortality at 30 months, a second primary endpoint in the study. It also tried to lure back investors’ interest by touting its deeper roster of potential meds. In the presentation, the company estimated it would have up to 19 proof-of-concept readouts by 2027 and 22 by 2029.

In the near term, the company is bolstering its other late-stage asset, encaleret, a calcium-sensing receptor antagonist for type 1 autosomal dominant hypocalcemia. In its presentation, BridgeBio anticipated that in the coming months it would have a full readout of its phase 2 trial and would engage regulators. A phase 3 trial is then expected to be launched later this year with interim data in 2023.

Even as it sheds staff and tries to keep up investor morale, the company still sits atop a significant $800 million in cash, with an additional $300 million from milestone payments expected throughout this year. But judging by BridgeBio’s $650 million in total operating costs and expenses last year, it will need to find more cash in the near future.

By Max Bayer

Source: fiercebiotech.com

comments closed

Related News

January 29, 2023

Colorcon, Inc. signs Put agreement with intent to acquire controlled atmosphere packaging specialist Airnov Healthcare Packaging

Life sciences

Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.

January 29, 2023

Takeda pledges up to $1.13B for rights to Hutchmed’s cancer drug fruquintinib outside of China

Life sciences

Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.

January 29, 2023

Vir taps Bayer dealmaker Marianne De Backer as its next CEO

Life sciences

On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.

How can we help you?

We're easy to reach