Generation Bio to cut 90% of workforce amid strategic review

CAMBRIDGE, Mass. - Generation Bio Co. (NASDAQ:GBIO), currently trading at $4.05 and down over 80% in the past year, announced Tuesday it is evaluating strategic alternatives and implementing a restructuring plan that will reduce its workforce by approximately 90% by the end of October 2025. According to InvestingPro analysis, the company’s market capitalization has shrunk to just $27.35 million.

The biotechnology company, which focuses on developing treatments for T cell-driven autoimmune diseases, reported it has retained TD Cowen to explore options including a potential acquisition, merger, business combination, or sale of assets.

Generation Bio also released new data showing its cell-targeted lipid nanoparticle (ctLNP) system successfully delivered small interfering RNA (siRNA) to T cells in non-human primates. The company claims this represents the first demonstration of siRNA delivery to T cells in non-human primates.

"While our delivery system is mature, our program data are early and we recognize the significant time and investment required to reach proof-of-concept in patients, as well as the uncertainty of extending our current cash runway," said Geoff McDonough, CEO of Generation Bio, in a statement based on the company’s press release.

The company reported $141.4 million in cash, cash equivalents, and marketable securities as of June 30, 2025, compared to $185.2 million at the end of 2024. For the second quarter, Generation Bio posted a net loss of $20.9 million, or $3.12 per share. InvestingPro data reveals the company’s current ratio of 8.43 indicates strong short-term liquidity, though the company is quickly burning through its cash reserves. InvestingPro analysis suggests the stock is currently undervalued based on its Fair Value assessment, with 11 additional ProTips available to subscribers.

In a separate development, Generation Bio announced it has settled previously disclosed litigation with the landlord of a facility in Waltham, Massachusetts. Under the settlement, the company will pay $31 million to extinguish a $58 million lease liability.

The restructuring will begin in mid-August and conclude at the end of October, with the company maintaining core research and development capabilities during the strategic review process. With an overall Financial Health Score of 1.89 (rated as "FAIR" by InvestingPro), and a concerning gross profit margin of -98.38%, the company faces significant challenges ahead. Discover comprehensive analysis and detailed metrics in the exclusive Pro Research Report, available to InvestingPro subscribers.

In other recent news, Generation Bio Co. announced it will implement a 1-for-10 reverse stock split of its common stock. This change is set to take effect on July 21, 2025, with trading on a split-adjusted basis expected to commence the following day. The reverse stock split was approved by stockholders at the company’s Annual Meeting earlier in June. As a result of this decision, the number of outstanding shares will be reduced from approximately 67.3 million to 6.7 million. Despite this reduction, the company will maintain the same number of authorized shares and par value. This move is part of Generation Bio’s recent developments and strategic adjustments.

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