Kaleo Announces 58 Layoffs Despite Recent Expansion Plans for EpiPen Rival Auvi-Q

Layoffs:
Kaleo, a Richmond-based pharmaceutical company, is laying off 58 employees, with 8 of those layoffs affecting Virginia-based remote workers, including a vice president of human resources and a chief legal and compliance officer.

Recent Contracts:
The layoffs come after Kaleo secured a new federal drug development contract worth up to $27.7 million to design a pralidoxime chloride injector for nerve agent poisoning.

Product Portfolio:
Kaleo is known for developing the Auvi-Q, an epinephrine injectable to treat allergic reactions, and the Aerio, a portable medication injector device.

Expansion Plans:
The layoffs contradict recent pledges to double the in-office commercial team for Auvi-Q, an EpiPen competitor.

Company Background:
Kaleo was founded in 2005 by brothers Evan and Eric Edwards and was acquired by New York-based Marathon Asset Management in 2021.