FibroGen will cut 127 jobs at its San Francisco headquarters after two late-stage pancreatic cancer drug trials failed, marking the latest blow in a brutal year for Bay Area biotech layoffs.
The company revealed the disappointing trial results on July 30 while announcing a cost-cutting plan that includes halting pamrevlumab development entirely. That antibody candidate had targeted a protein linked to tumor growth.
Roughly 75% of FibroGen’s U.S. workforce faces elimination. According to a WARN filing submitted to California regulators on Friday, just 51 employees will remain at the San Francisco office. All affected workers received notification the same day.
The cuts sweep across every level of leadership. FibroGen’s chief scientific officer and four senior vice presidents lose their positions. Nine vice presidents, eight of 16 executive directors, 19 of 27 senior directors, and 16 of 24 directors also face layoffs. Lower-level staff absorb even deeper reductions, including scientists, research associates, quality specialists, and executive assistants.
The trial results delivered a significant setback for pancreatic cancer patients. Researchers designed pamrevlumab to inhibit a protein believed to accelerate tumor growth. Two separate studies examined metastatic pancreatic ductal adenocarcinoma and locally advanced, unresectable pancreatic cancer. Neither achieved the company’s survival goals. In one trial, patients who received the placebo lived longer on average than those taking the experimental drug.
CEO Thane Wettig acknowledged the staff’s deep disappointment while thanking patients and trial participants for their contributions. He expressed gratitude to employees who dedicated their careers to developing treatments for deadly diseases.
Investors reacted swiftly. FibroGen’s stock lost half its value between July 30 and August 1. The company now trades below 50 cents per share, down approximately 99% since early 2021.
These layoffs extend a broader contraction across Bay Area biotech firms, as companies face mounting pressure to slash costs after pipeline failures.
