Mere months after its cancer blockbuster hopeful topped Bayer’s Stivarga in a phase 3 trial, Exelixis is conducting a reorganization that includes winding down the oncology company’s Pennsylvania site and laying off 130 employees, a company spokesperson confirmed to Fierce Biotech.
“Exelixis hired a significant number of employees—including many in fully remote positions—during the pandemic and post-pandemic period to meet the company’s needs at the time,” the spokesperson said. “As our business has continued to evolve, we have made the difficult decision to reorganize the company’s structure to focus largely on our operations in Alameda, California.”
The company hopes to reopen many of the impacted positions in Alameda, the spokesperson added, while operations at Exelixis’ King of Prussia, Pennsylvania, location will cease.
“Locating future roles at our Alameda headquarters reflects our continued belief that working together as a single, cohesive team puts us in the best position to maximize the opportunities for cabozantinib, zanzalintinib and our early pipeline on behalf of the patients we serve,” the spokesperson said.
While the Pennsylvania site is shutting down, the layoffs are not limited to that location. According to a WARN notice filed in California, 71 employees at Exelixis’ Alameda site are being laid off. An additional 33 remote employees who report to California-based managers are also being cut.
Those being dismissed include four vice presidents at the company, a clinical trial manager and several scientists, according to the WARN report.
Zanzalintinib grabbed headlines in June when, combined with Roche's Tecentriq, it outperformed Bayer’s Stivarga in a phase 3 colorectal cancer trial. Exelixis hopes zanzalintinib’s improved half-life makes it a worthy successor to flagship oncology medicine Cabometyx (cabozantinib), believing the molecule can secure a variety of cancer approvals and top the approved med’s peak sales.
At the time, William Blair analysts wrote that the phase 3 win ensured a “meaningful commercial opportunity for the budding franchise.” Exelixis’ shares jumped 12% to around $45 in response to the trial’s success.
Exelixis completed its last restructuring in January 2024, saying goodbye to 175 staffers in another effort to consolidate focus on label expansions for Cabometyx and the development of zanzalintinib. In addition to trials for Cabometyx and zanzalintinib, the cancer specialist’s pipeline contains several phase 1 assets in development for solid tumors.
Editor's note: This story was updated at 9:15 a.m. ET on Aug. 29 to include more details about who is affected by the layoffs.