While the biopharma industry grapples with a tide of layoffs and restructuring, other sectors are experiencing a surge in growth. Goldman Sachs reported a historic high in its share prices, fueled by a thriving mergers and acquisitions (M&A) market. The financial powerhouse's success comes as the biopharma sector faces challenges highlighted by recent workforce reductions and company closures.
Biopharma Layoffs Persist in 2026
The start of 2026 has been marked by a wave of significant layoffs across the biopharma industry, affecting companies of all sizes. Massachusetts-based Lyra Therapeutics announced it would lay off all 28 remaining employees after deciding to abandon its lead asset, LYR-210. This decision follows the therapy's mixed clinical trial results and limited cash reserves, with the company reporting only $22.1 million in funds as of September 30, 2025.
EMD Serono, the U.S. division of Merck KGaA, also confirmed layoffs at its Durham, North Carolina, offices. The downsizing comes as part of efforts to streamline operations following the $3.4 billion acquisition of SpringWorks Therapeutics in 2024. The integration brought the cancer drug Ogsiveo into Merck KGaA's portfolio, but the company is now cutting back research staff to optimize resources.
SonomaBio has likewise joined the layoff trend, shedding an unspecified number of staff across its San Francisco and Seattle offices. This restructuring aims to extend the company’s cash runway into 2027 as it continues developing its lead rheumatoid arthritis therapy, SBT-77-7101.
Other notable layoffs include InflaRx cutting 30% of its workforce to focus resources on its lead asset, izicopan, and Rampart Bioscience shutting its doors entirely after funding challenges derailed its non-viral gene therapy projects.
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Stark Industry Contrast
As biopharma firms tighten their belts, the broader financial sector tells a different story. The global M&A market has been a bright spot, driving up the value of companies like Goldman Sachs. While layoffs and budget constraints dominate biopharma headlines, financial institutions are capitalizing on the steady recovery of deal-making activities across industries.
The success of Goldman Sachs, reflected in its record-breaking stock performance, underscores the disparity between industries. The M&A boom has positioned it as a clear winner in a competitive market, offering a stark contrast to the challenges faced by biopharma, where failed trials and shrinking cash runways have led to widespread staff reductions.
Key Layoff Announcements
The string of biopharma layoffs spans several companies:
- Tessera Therapeutics is reducing its workforce by 90 employees, approximately 35% of its staff, as it prioritizes clinical programs in alpha-1 antitrypsin deficiency and sickle cell disease.
- Intercept Pharmaceuticals announced 146 layoffs at its New Jersey campus after withdrawing its flagship liver drug, Ocaliva, from the market.
- Mythic Therapeutics closed its doors after failing to secure funding for its antibody-drug conjugate research, letting go of all employees.
- Pfizer continues its cost-cutting efforts, laying off more than 200 employees in Switzerland, part of a larger global workforce reduction.
Broader Implications
The biopharma sector’s struggles reflect ongoing financial pressures, delayed clinical successes, and the need for operational efficiency, a sharp contrast to the robust M&A activity fueling growth in other industries. The juxtaposition highlights the uneven recovery across sectors, as some companies thrive and others face existential challenges.
As the year progresses, the disparity between industries will likely remain a focal point, with biopharma navigating turbulent shifts while financial giants continue to ride the wave of market growth.
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