A month after Genentech confirmed the restructuring of its early development group, the Roche subsidiary has now disclosed that this change has formed part of a round of 103 layoffs.
The South San Francisco-headquartered business already admitted back in June that its vice presidents Vishva Dixit, M.D., Man-Wah Tan, Ph.D., and Todd McDevitt, Ph.D., were among the casualties of the latest round of layoffs. But Genentech declined to reveal at the time how many other positions would be affected.
Now, Genentech has told Fierce that “103 positions across several areas will be eliminated,” which include the changes at the Genentech Research and Early Development (gRED) group, “as well as in other parts” of the organization
“It is important to emphasize that most of these are focused adjustments within Genentech impacting a small proportion of the organization and we continue to hire within Genentech, including gRED,” a spokesperson told Fierce over email. “Our hiring approach reflects the capabilities, expertise, and areas of science that are most critical to advancing our portfolio and delivering transformative medicines to patients now and in the future.”
The 103 layoffs are just the latest round of restructuring at Genentech, which last year issued pink slips to at least 489 employees, with many of the changes handed down by Roche in a global manufacturing reshuffle. Back in April of 2024, a 3% workforce reduction by Roche affected 436 Genentech employees.
Genentech confirmed the latest layoffs as it agreed to hand $25 million to Otsuka Pharmaceutical subsidiary Astex Pharmaceuticals as part of pact to discover new breast cancer drugs.
Astex’s fragment-based drug discovery platform has previously attracted Big Pharma partners like Merck & Co., AstraZeneca and Janssen, as well as Novartis Institutes for BioMedical Research—with whom it collaborated on the now-blockbuster breast cancer drug Kisqali in the mid-2000s.
Today’s deal will see Cambridge, U.K.-based Astex in line for up to $490 million in milestone payments from Genentech, as well as tiered royalties on net sales of any resulting medicines.
The collaboration will involve Astex granting Genentech the exclusive license to compounds from Astex’s existing drug discovery program for breast cancer, with the two organizations working together to “accelerate the further optimisation and development of lead compounds towards the identification of preclinical candidates,” according to a July 6 release.
Genentech will then take ownership of these programs for preclinical development and beyond.
“We are committed to pushing the boundaries of scientific innovation and turning breakthroughs into better outcomes for people with breast cancer,” Boris Zaïtra, Head of Roche Corporate Business Development, said in the release.
“Working alongside partners like Astex Pharmaceuticals in pursuit of precision therapies against cell-cycle regulators, we follow the science to focus our innovation on the areas of the highest unmet need,” Zaïtra added.