Arbutus Biopharma Corporation, a clinical-stage biopharmaceutical company focused on infectious diseases, has announced a substantial reduction in its workforce as part of its ongoing efforts to streamline operations and focus on its most critical assets.
In a recent update regarding its fourth-quarter and year-end 2024 financial results, the company revealed that it has reduced its workforce by 57%, with only 19 employees remaining post-reduction.
This move follows a broader strategy to enhance financial efficiency and ensure optimal resource allocation. Arbutus has also decided to exit its corporate headquarters in Warminster, Pennsylvania, and discontinue its in-house scientific research, marking a clear pivot in its operational approach. These steps are expected to result in a one-time restructuring charge of approximately $11 million to $13 million in the first quarter of 2025.
Lindsay Androski, the newly appointed CEO of Arbutus, emphasized that the company’s focus will now be on advancing its lead program, imdusiran, into a Phase 2b trial. The workforce reduction is part of a larger effort to retain a core team capable of driving the clinical development of imdusiran, while also improving financial and operational efficiency.
The company is also continuing its efforts to protect its intellectual property, particularly in ongoing litigation with Moderna and Pfizer/BioNTech regarding the use of its lipid nanoparticle (LNP) technology in COVID-19 vaccines. The outcome of these legal proceedings, along with the company’s restructuring, is expected to influence Arbutus’s trajectory in 2025.
While these changes reflect significant operational shifts, Arbutus remains confident in its ability to advance its pipeline, deliver value to stakeholders, and navigate the evolving landscape of infectious disease treatments.
