Vir Biotechnology is implementing cost-cutting measures, primarily through workforce and site reduction, the drugmaker announced this week.
In a bid to streamline resources for high-impact initiatives, Vir will shutter its R&D facilities in St. Louis, Missouri, and Portland, Oregon, in 2024. Research activities will continue at selected sites in San Francisco, California, and Bellinzona, Switzerland. The restructuring includes the elimination of approximately 12% of positions, totaling 75, and involves discontinuing the innate immunity small molecule group. These workforce changes are slated for completion by Q1 2024.
The overarching goal of the restructuring is to slash the company's annual cost structure by a minimum of $40 million. The move is intended to reinforce the biotech's focus on its chronic hepatitis delta and chronic hepatitis B clinical programs and antibody platform to target infectious diseases, autoimmune diseases, and oncology.
In April 2020, GSK paid $250 million to enter a partnership with Vir, focused on researching and developing solutions for coronaviruses. The deal was amended earlier this year, with GSK leaving Vir to advance next-gen COVID solutions independently or with other partners.