From Yahoo Finance: 2025-05-08 12:26:00

In a struggling biotech sector, Vor Bio, Korro Bio, Rallybio, and Insitro announce layoffs affecting at least a fifth of their workforces. Market volatility, leadership turnover, and funding challenges have led to a slowdown in deals and IPOs, impacting both private and public drugmakers.

Korro Bio is streamlining operations with layoffs to focus on completing an early-stage study, nominating a second development candidate, and advancing a partnership with Novo Nordisk. The company expects to operate until 2027 with 112 full-time employees as of March.

Insitro, an AI drug discovery specialist, is laying off 22% of its workforce to sharpen focus on key priorities and ensure clinic readiness into 2027 amidst macroeconomic uncertainty. Rallybio, who previously laid off 45% of its workforce in 2024, announced further cuts to navigate financial challenges.

Investors are pressuring struggling biotechs like Vor Bio to shut down and return cash to shareholders rather than pivot or merge. Activist firms have targeted company boards, leading to liquidation plans like Third Harmonic Bio’s and potential outcomes for Vor Bio following strategic review.

Read more: 4 more biotechs cut staff amid market tumult