Seattle-based biotech Neoleukin Therapeutics Inc. (Nasdaq: NLTX) said it will lay off about 70% of its workforce.
The company announced the move in a press release on Wednesday, adding that CEO Jonathan Drachman is also stepping down. Neoleukin didn't name a replacement but said the company is exploring "strategic alternatives" such as a sale, merger or a divestiture of assets, among other options.
"Based on the anticipated time and investment necessary to further develop the technology and potential product candidates in this challenging capital markets environment, we believe that it is appropriate to pursue other strategic options,” board chairman Todd Simpson said in the release. “We believe it was a prudent decision that will maximize shareholder value."
Neoleukin plans to finish the layoffs by the first half of this year. The company had an earlier round of layoffs in November, when it announced it was cutting its headcount by 40% and discontinuing its lead candidate, NL-201, a protein therapeutic aimed at cancer immunotherapy. Neoleukin said at the time the moves would extend its runway to the second half of 2025.
Neoleukin was founded in 2018 and spun out of the University of Washington in 2019. The company went public in 2019 through a merger with Aquinox Pharmaceuticals. On its website, Neoleukin says it is using "computational methods to create new therapies." According to a regulatory filing, Neoleukin had 91 full-time employees at the end of 2021. It currently has over 60 employees listed on LinkedIn. Bachman has been with the company since its founding, before which he spent 14 years at Bothell-based biotech Seagen.
Multiple biotechs have laid off employees this year. In February, Redmond-based Eliem Therapeutics announced it was laying off about 55% of its staff and moving on from CEO Bob Azelby. Earlier this month, Danish pharmaceutical giant Novo Nordisk confirmed it was laying off 86 workers in Seattle and closing its wet-lab activities in the city.
