Gossamer Bio, Inc.

Gossamer Bio announced a reduction in force after its Phase 3 trial for seralutinib failed to meet its prespecified statistical threshold. The company confirmed to KRON4 that 77 employees were laid off on Monday, representing roughly a 48% reduction in its overall workforce. The cuts were described as cost-saving measures to preserve cash while the company determines next regulatory steps for the investigational PAH drug. Severance packages were provided, though details were not disclosed. Gossamer is headquartered in San Diego and also maintains an office in Dublin, Ireland; the layoffs followed the February announcement of disappointing trial results and a steep drop in the company’s stock.

Gossamer Bio, Inc. has laid off approximately 50 employees, which constitutes half of its workforce, following disappointing results from a clinical trial that led to a significant drop in stock prices. The layoffs are part of a restructuring effort aimed at reducing costs and refocusing the company's strategic priorities. This decision comes in the wake of challenges faced in the biotech sector, particularly concerning the efficacy of their drug candidates. The company is now looking to streamline operations and improve its financial standing after the trial setbacks.