Lyell Immunopharma to close West Hills facility, cut 73 jobs

Lyell Immunopharma, Inc. (market capitalization: $144.37 million), a pharmaceutical company specializing in the development of cancer therapies, announced plans to shut down its West Hills manufacturing facility and reduce its workforce by approximately 73 employees. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 7.06, indicating sufficient resources to meet its short-term obligations. The decision was approved by the Board of Directors on March 31, 2025, following the successful transfer of technology to the company’s LyFE manufacturing center in Bothell, Washington.

The Bothell facility, having received FDA clearance for an Investigational New Drug Comparability Protocol, is now equipped to manufacture IMPT-314, a drug candidate for a Phase 1/2 clinical trial targeting relapsed/refractory aggressive large B-cell lymphoma. The company anticipates that the Bothell site will have adequate capacity to support ongoing and future pivotal trials, as well as potential commercial launch requirements.

The closure of the West Hills facility, which was acquired through Lyell’s purchase of ImmPACT Bio in 2024, is expected to result in costs ranging from $3.0 million to $4.0 million. These expenses, largely related to severance and other associated costs, are projected to be recognized mainly in the second and third quarters of 2025. InvestingPro analysis indicates the company is currently burning through cash rapidly, though it maintains more cash than debt on its balance sheet. However, the company cautions that actual costs may vary due to a number of factors and additional expenses could arise in connection with the facility’s closure and staff reductions.

In conjunction with the restructuring, Lyell reiterated its financial guidance for 2025, forecasting a net cash use between $175 million and $185 million. This projection is expected to extend the company’s cash runway into 2027, allowing it to reach multiple value-creating clinical milestones.

Additionally, Lyell disclosed the departure of Matthew Lang, J.D., the Chief Business Officer, effective April 13, 2025. Lang will continue to serve as an advisor to the company until September 30, 2025.

The disclosures in this article are based on a press release statement and reflect the company’s current expectations, which are subject to risks and uncertainties that could cause actual results to differ materially. These forward-looking statements include Lyell’s ability to manufacture adequate drug supplies, progress clinical trials, and manage the facility closure and workforce reduction effectively. The company has not provided any updates beyond the information contained in the SEC filing.

In other recent news, Lyell Immunopharma has been notified by Nasdaq regarding non-compliance with the minimum bid price requirement, as its stock has closed below $1.00 for 33 consecutive business days. The company has until July 22, 2025, to regain compliance by maintaining a closing bid price of at least $1.00 for 10 consecutive business days. Lyell Immunopharma is exploring options such as a reverse stock split to address this issue. Meanwhile, H.C. Wainwright has reiterated a Neutral rating on Lyell Immunopharma, maintaining a price target of $1.00. The firm is closely watching the development of Lyell’s IMPT-314, a CAR-T candidate for large B-cell lymphoma, with data expected in mid-2025. Analysts are particularly interested in comparing upcoming trial results with existing standard treatments like the ZUMA-7 trial. The competitive landscape for CAR-T therapies remains challenging, with the need for new treatments to demonstrate significant superiority over existing options. Lyell Immunopharma’s efforts to address Nasdaq’s requirements and its ongoing development projects are being monitored by investors.

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