San Francisco-based immunology company, Vir Biotechnology, has announced plans to reduce its workforce by approximately 12% and close two research facilities in a bid to cut operating costs.
Cost-Cutting Measures for Increased Savings
Vir Biotechnology revealed that the cost-cutting moves were aimed at achieving annual savings of at least $40 million. As part of these measures, the company will shut down its research and development facilities located in St. Louis, Mo. and Portland, Ore. by 2024.
Workforce Reduction and Discontinuation of Innate Immunity Small Molecule Group
To streamline operations and promote efficiency, Vir Biotechnology will be eliminating a total of 75 positions, including those within the innate immunity small molecule group, as previously announced.
Facility Closure Charges and Severance Costs
The company is anticipating charges amounting to $30 million to $40 million that will be associated with the closure of the facilities and severance payments to affected employees.
Strategic Alignment for Sustainable Growth
Marianne De Backer, the Chief Executive of Vir Biotechnology, emphasized the purpose-led changes that will align the company with its goals of delivering sustainable growth and ensuring future success.
Phase 2 Trial Update
Vir Biotechnology confirmed its plans to report clinical data from the Phase 2 trial for treatments targeting chronic hepatitis delta in the second quarter of 2024.