Pfizer has laid off 75 employees at its Sanford, North Carolina, facility, marking the second round of workforce reductions in connection to its failed Duchenne muscular dystrophy (DMD) gene therapy trial. This follows an earlier cut of 150 positions at the same site just three months ago, underscoring the company’s financial strain after the unsuccessful phase 3 trial.
In a statement, Pfizer confirmed that these layoffs are directly tied to the disappointing results of the DMD gene therapy trial, which had initially been a major hope for the company’s expansion into rare disease therapies. The failure of this trial has forced Pfizer to reassess its operations and workforce needs at the Sanford location, one of its key gene therapy manufacturing hubs.
The layoffs also coincide with Pfizer’s decision to sell a newly acquired manufacturing facility in Sanford, known as Sanford North. Acquired from contract development and manufacturing organization (CDMO) Abzena in January 2023, the site was intended to play a central role in the production of the DMD gene therapy candidate. However, following the trial’s failure, operations at Sanford North were halted in July, and Pfizer is now exploring the possibility of selling the facility, just months after the purchase. The company had originally planned to officially open the site before the end of 2023.
This wave of job cuts is part of a larger cost-saving initiative Pfizer initiated in 2023, which aimed to reduce spending by $4 billion. In May 2024, Pfizer expanded the plan, targeting an additional $1.5 billion in savings by the end of 2027. These financial adjustments reflect the broader industry pressure on Pfizer, as it struggles to recoup the significant investments made in research and development, particularly in the high-risk gene therapy space.
The layoffs come amid rising pressure from activist investor Starboard Value, which recently called for Pfizer’s board to take stronger action in holding management accountable for the company’s lackluster returns on its R&D and mergers and acquisitions (M&A) investments. Starboard’s concerns were voiced during a presentation at the 13D Monitor Active-Passive Investor Summit in New York, where the firm urged Pfizer to reassess its spending strategies to better align with shareholder expectations.
The future of Pfizer’s gene therapy ambitions now appears uncertain as it continues to grapple with setbacks from the DMD trial, the halted operations at Sanford North, and growing demands for financial accountability from investors. The company is expected to provide further details about its restructuring efforts when it releases its third-quarter earnings report on October 31, as it forecasts a 5-12% decline in year-over-year revenues.
