Another CT biotech company making significant workforce cuts
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Rallybio co-founders Martin Mackay, Ph.D., left, and Dr. Stephen Uden.
A week after one New Haven-based biotechnology company announced a mass layoff, another has announced plans to cut 40% of its workforce.
RallyBio, based at 234 Church St., in New Haven, announced the layoffs as part of its first-quarter earnings report Thursday. The company reported a net loss of $9.46 million, or 21 cents per share, for the quarter ended March 31, a significant improvement from a net loss of $19.12 million, or 47 cents per share, in the same quarter last year.
The results were also an improvement from the fourth quarter of last year, when it reported a net loss of $11 million, or 25 cents per share.
Revenue also improved, with RallyBio reporting revenue of $212,000 in the first quarter, up from $38,000 in the fourth quarter.
Despite the improvement, the company said it is “implementing a 40% workforce reduction, representing nine positions, which will be substantially complete by the end of the second quarter of 2025.”
It estimated that the job cuts will result in aggregate charges of about $1.7 million, “primarily for one-time employee severance and benefit costs, and excluding share-based compensation expense.”
The report follows the company’s announcement in April that it has discontinued development of a therapy intended to prevent a rare immune disorder in fetuses and newborns.
The company is developing therapies to address rare diseases in the areas of hematology, immuno-inflammation, maternal fetal health, ophthalmology and metabolic disorders.
RallyBio has significantly reduced its workforce over the past two years. According to its annual reports, the company had 43 full-time employees as of Dec. 31, 2023, which was reduced to 25 full-time employees by the end of last year.
RallyBio’s announcement of job cuts came just a week after New Haven-based biotech company Arvinas Inc. announced it was cutting 131 employees, or about a third of its workforce.
Arvinas, a clinical-stage biotechnology company working on treatments for breast and prostate cancers, said the layoffs, which include 92 Connecticut residents, were intended to “streamline operations across the organization and enable the efficient progression of the company’s portfolio.”
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