Pfizer Announces Additional Layoffs in North Carolina Following DMD Trial Setback

Layoffs:
Pfizer has laid off an additional 75 employees at its Sanford, North Carolina facility, following an earlier cut of 150 positions at the same site and 60 at its Rocky Mount facility.

Reason:
The layoffs are directly tied to the disappointing results of Pfizer’s Duchenne muscular dystrophy (DMD) gene therapy trial, which failed to meet its primary endpoint in a Phase 3 clinical trial.

Cost-Cutting Measures:
The layoffs are part of Pfizer’s broader cost-saving initiative, which aims to reduce spending by $1.5 billion by the end of 2027.

Facility Sale:
Pfizer is evaluating the potential sale of a manufacturing facility in Sanford, known as Sanford North, which was acquired from Abzena in January 2023 and was intended for the production of the DMD gene therapy candidate.

Industry Pressure:
The layoffs come amid rising pressure from activist investors, such as Starboard Value, which has called for Pfizer’s board to take stronger action in holding management accountable for the company’s lackluster returns on its R&D and M&A investments.