Bicycle Therapeutics announced it will reduce its workforce by around 25% as part of a plan to lower operating expenses by approximately 30%. The company stated the measures are intended to extend its cash runway into 2028, compared to the second half of 2027 under its previous spending plan.
The U.K.-based biotech disclosed the cost-saving initiative in its second-quarter earnings report and financial filing. The reduction will affect both current and planned positions. At the end of 2024, Bicycle employed 305 people, with most based in the U.K. and around 120 working at its Cambridge, Massachusetts location.
Severance payments and other charges associated with the layoffs are expected to total $5.3 million, with most of the costs falling in the third quarter. The company anticipates realizing long-term savings from the changes.
The restructuring follows notification from Roche subsidiary Genentech that it will end its oncology collaboration with Bicycle. The company reported that Genentech provided notice in July, with the termination effective this month. Bicycle expects to recognize $6.5 million in remaining deferred revenue from the collaboration in the third quarter.
A Bicycle spokesperson said the layoffs are “not related” to the Genentech deal termination. The spokesperson added, “Given the challenging macroeconomic environment, we are being prudent and taking action to conserve our cash and therefore protect the long-term interests of our company.”
The partnership, formed in 2020, aimed to discover new immuno-oncology drug candidates. Genentech paid Bicycle $30 million upfront and later exercised options to nominate additional targets, including one in 2022 that resulted in a $10 million payment. The agreement included potential development and regulatory milestone payments of $200 million per program, plus up to $200 million in sales milestones.
Over time, Genentech scaled back its involvement, ending one program in 2023, stopping work on another in 2024, and discontinuing a third in early 2025. The companies had deprioritized the collaboration in 2024, with Bicycle indicating that dedicating resources to this capital-intensive area would be difficult under the current macroeconomic environment.
The conclusion of the partnership means Bicycle will no longer receive revenue from the collaboration beyond the current quarter. Up to the end of June 2025, the agreement had contributed $56 million to the company.
Bicycle said it will continue to advance its internal programs, including zelenectide, a Nectin-4 drug candidate for metastatic urothelial cancer. The company plans to meet with the U.S. Food and Drug Administration in the fourth quarter to discuss dose selection for a phase 2/3 pivotal trial and the potential for an accelerated approval pathway.
According to its 2024 annual report, none of Bicycle’s employees are unionized or covered by collective bargaining agreements. The company stated that the workforce reduction, along with other strategic adjustments, is intended to support operations through 2028 and help manage market conditions.
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