Cancer-focused biotechnology company Tango Therapeutics announced a significant workforce reduction, eliminating approximately 30 positions as part of broader cost-cutting measures. The layoffs, representing about 20% of the company’s workforce, primarily affect preclinical research operations.
The restructuring comes after Tango, which had 155 full-time employees at the end of 2024, faced several setbacks in its drug development programs over the past year. CEO Barbara Weber emphasized that the decision was driven by challenging market conditions and the need to concentrate resources on the company’s PRMT5-focused clinical programs.
This strategic shift follows two notable pipeline adjustments in 2024. In May, Tango discontinued TNG348 during Phase 1/2 trials after participants showed concerning liver function test results. The drug had been intended for combination therapy with Lynparza, a PARP inhibitor. Later in November, the company streamlined its PRMT5 inhibitor portfolio, narrowing focus to two promising candidates.
TNG462, now Tango’s lead compound, is undergoing Phase 1/2 clinical trials for pancreatic and lung cancers, with early data suggesting favorable safety and tolerability compared to competing treatments. The company maintains a second PRMT5 program, TNG456, which is being studied in combination with Eli Lilly’s Verzenio for glioblastoma treatment.
The PRMT5 inhibitor field has attracted significant attention from major pharmaceutical companies, with Amgen, Bristol Myers Squibb, and Bayer all pursuing similar therapeutic approaches. Tango has established valuable partnerships in the industry, including ongoing collaborations with Gilead Sciences and Eli Lilly. In 2024, Gilead licensed one of Tango’s discovery programs for $12 million, adding to their substantial partnership history dating back to 2018.
Financial reports indicate Tango held approximately $258 million in cash and equivalents as of December 31, with projections suggesting sufficient funding into 2026. The company, which entered public markets through a SPAC merger in 2021 that raised $353 million, has experienced volatile stock performance. Current share prices hover around $1.
The workforce reduction at Tango reflects broader challenges in the biotech sector during early 2025, with companies like IGM Biosciences, Intellia Therapeutics, and Cargo Therapeutics also implementing restructuring measures. The industry faces headwinds from declining investment interest, compounded by uncertainties surrounding Trump administration policies affecting tariffs and federal health funding.
Despite these challenges, Tango maintains its commitment to advancing its core PRMT5 programs, which represent a promising therapeutic approach first identified in the 2010s. The company’s strategic partnerships with major pharmaceutical firms and its focused development pipeline suggest a determined effort to navigate through current market difficulties while advancing potential cancer treatments.
The restructuring aligns with a pattern of biotech companies taking preemptive measures to extend their operational runways amid challenging market conditions. By reducing expenses in preclinical research while maintaining focus on advanced clinical programs, Tango aims to optimize its resource allocation and strengthen its position for future development milestones.
These developments occur against a backdrop of broader industry challenges, as the biotech sector grapples with reduced investment flows and increased market uncertainty. The company’s decision to streamline operations while maintaining key clinical programs reflects a strategic approach to sustaining drug development efforts in a challenging financial environment.
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