ALX Oncology, a Bay Area biotech firm, announced a 30% staff reduction to reallocate resources for important clinical trials for its lead cancer therapy, evorpacept. CEO Jason Lettmann called the layoffs challenging, aimed primarily at preclinical research functions. The company expects this move to extend its financial runway into Q4 of 2026 despite previously accruing a significant deficit. The biotech sector is currently facing turmoil, with many firms reducing staff as stock values plummet. ALX's ongoing commitment to developing evorpacept shows its focus on addressing cancer treatment challenges.
ALX Oncology announced it is laying off about 30% of its staff to reallocate resources towards breast and colorectal cancer trials, extending its cash runway.
CEO Jason Lettmann described the layoffs as a "difficult decision,” indicating the necessity of cuts to bolster funding for their leading cancer therapy.
The layoffs are part of a strategy to extend ALX's financial runway into Q4 of 2026, highlighting the financial urgency despite ongoing research efforts.
Despite its challenges, ALX's lead candidate, evorpacept, is positioned as a potential breakthrough in treating cancer by blocking cell signals that inhibit the immune response.
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