aibioLyell Immunopharma to close West Hills plant and cut about 73 jobs, reiterates 2025 cash guidance
Tickers LYEL
Lyell expects $3.0 million to $4.0 million in closure and severance costs and net cash use of $175 million - $185 million in 2025. Its Chief Business Officer is also resigning.
Key facts
- Company
- Lyell Immunopharma, Inc. (NASDAQ: LYEL)
- News type
- Distress
- Primary source
- Lyell Immunopharma, Inc. Form 8-K filed April 1, 2025 (SEC EDGAR)
Lyell Immunopharma, Inc. (Nasdaq: LYEL) said its Board of Directors approved the closure of the West Hills manufacturing facility on March 31, 2025, along with a workforce reduction of approximately 73 employees there. The company expects the closure and layoffs to cost between $3.0 million to $4.0 million. Lyell disclosed the restructuring in a Form 8-K filed April 1, 2025, and said it still expects net cash use of $175 million - $185 million in 2025.
What the filing says
Lyell says its LyFE manufacturing center in Bothell, Washington now makes IMPT-314, its lead product candidate, for the ongoing Phase 1/2 clinical trial in relapsed/refractory aggressive large B-cell lymphoma. The filing credits a successful technology transfer and clearance by the U.S. Food and Drug Administration of an Investigational New Drug Comparability Protocol. Lyell expects the LyFE center to have enough capacity to supply its ongoing and planned trials of IMPT-314 and a potential commercial launch.
Because of that, the Board approved closing the West Hills facility, which Lyell acquired as part of its acquisition of ImmPACT Bio in 2024. The Board also approved cutting about 73 West Hills employees tied to the closure.
The costs of the restructuring
Lyell expects aggregate expenses of between $3.0 million to $4.0 million for severance, benefits, payroll taxes and other workforce reduction costs. It expects to recognize them primarily in the second and third quarters of 2025. The company cautions that the charges depend on a number of assumptions and that actual results may differ materially. It also says it may incur additional costs not currently contemplated.
The filing was made under Item 2.05, the 8-K item for costs associated with exit or disposal activities.
Cash guidance
Under Item 7.01, Lyell reiterates its financial guidance. It expects net cash use of $175 million - $185 million in 2025, which it says is expected to provide cash runway into 2027. Cash runway is the length of time a company can fund operations from the money it has. The forward-looking statements in the filing list the sufficiency of Lyell's cash resources among the risks that could change these expectations.
Chief Business Officer resigns
Under Item 5.02, the filing reports that on March 27, 2025, Matthew Lang, J.D. notified Lyell of his resignation as Chief Business Officer and from all other offices of the company, effective April 13, 2025. He will remain an advisor to the company until September 30, 2025. Lang also signed the 8-K as Chief Business Officer.
About the company
In its annual report on Form 10-K, filed March 11, 2025, Lyell describes itself as a clinical-stage cell therapy company. It is advancing autologous chimeric antigen receptor (CAR) T-cell product candidates for hematologic malignancies and solid tumors. Autologous means the therapy starts with the patient's own cells.
Its lead program, IMPT-314, is a dual-targeting CD19/CD20 CAR T-cell product candidate under evaluation for aggressive large B-cell lymphoma. Lyell acquired ImmPACT, the privately owned company developing IMPT-314, in October 2024. Lyell also develops next-generation CAR T-cell candidates for solid tumors.
Lynn Seely, M.D., President and Chief Executive Officer, signed the 10-K, and Charles Newton signed as Chief Financial Officer. The signature page also lists Richard D. Klausner, M.D., as Chair of the Board of Directors, along with other directors.