Bristol Myers Squibb Announces Layoffs at Mirati Therapeutics Following Acquisition

Bristol Myers Squibb (BMS) has initiated a significant workforce reduction at the headquarters of the recently acquired Mirati Therapeutics in San Diego, California, letting go of 252 employees. This move follows the closure of their merger in late January, where BMS purchased the cancer-focused biotech for $4.8 billion, with an additional $1 billion contingent on a drug’s development success. The acquisition brought Krazati, an FDA-approved lung cancer treatment, into BMS’s portfolio, a drug competing with Amgen’s Lumakras and reported to have generated $36 million in the first nine months of the previous year.

BMS’s decision to downsize is part of the integration process, aiming to align resources with its operational model and portfolio evolution. The company has committed to supporting the affected employees through this transition. This restructuring is part of a broader industry trend where large pharmaceutical companies streamline operations post-acquisition, as seen in recent actions by GSK with Bellus Health, Merck with Acceleron, and Sanofi with Kadmon. The layoffs are set to become effective on April 22, marking another round of job cuts for BMS, which had also announced 75 layoffs in Lawrenceville, New Jersey, reflecting the ongoing adjustments within the company to enhance its competitive stance in the biopharmaceutical sector.

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[Source: Fierce Pharma, March 26th, 2024]