Cancer-focused biotechnology company Tango Therapeutics has announced a reduction of approximately 30 employees, representing about 20% of its workforce, as part of efforts to extend its financial resources.
The staff reduction primarily affects preclinical research operations, according to CEO Barbara Weber, who confirmed the layoffs on Monday. The company, which employed 155 full-time workers at the end of 2023, is prioritizing its PRMT5-focused drug development programs amid challenging market conditions.
This restructuring follows several pipeline adjustments made by Tango throughout the previous year. In May, the company halted development of TNG348 after clinical trial participants showed liver function abnormalities during Phase 1/2 testing. The drug had been intended for combination therapy with AstraZeneca’s Lynparza.
Later in November, Tango streamlined its PRMT5 inhibitor portfolio, focusing on two promising candidates while shelving a third. Their lead compound, TNG462, is currently undergoing Phase 1/2 clinical trials for pancreatic and lung cancers, with early data suggesting favorable safety and tolerability compared to similar treatments.
The company maintains significant industry partnerships, including ongoing collaborations with Gilead Sciences and Eli Lilly. Their second PRMT5 program, TNG456, is being tested in combination with Lilly’s Verzenio for glioblastoma treatment. Last year, Gilead licensed one of Tango’s discovery programs for $12 million, adding to their substantial partnership that began in 2018.
PRMT5 inhibition has gained considerable attention in oncology research since the 2010s, with major pharmaceutical companies including Amgen, Bristol Myers Squibb, and Bayer pursuing similar development programs.
Financial reports from February indicated Tango held approximately $258 million in cash and investments as of December 31, with projected funding through early 2026. The company went public in 2021 through a SPAC merger that raised $353 million, though its stock performance has been volatile since then. Current trading prices hover around $1 per share.
The restructuring at Tango reflects broader challenges facing the biotechnology sector in 2025. Several other prominent companies, including IGM Biosciences, Intellia Therapeutics, and Cargo
Therapeutics, have also implemented workforce reductions this year. The industry’s difficulties have been compounded by diminishing investment interest and concerns 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 approach to cancer treatment. The company’s strategic partnerships with major pharmaceutical firms and its focused development strategy suggest a determined effort to navigate through the current market difficulties while advancing potentially valuable cancer therapies.
The layoffs represent a strategic pivot to conserve resources and maintain momentum in key clinical programs, even as the broader biotech sector faces significant headwinds. This restructuring aligns with a broader industry trend of companies streamlining operations to extend their financial runways during a period of market uncertainty and reduced investment activity in the biotechnology sector.
Be First to Comment