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Prothena Corporation plc (NASDAQ:PRTA) announced a significant workforce reduction of approximately 63% to substantially reduce operating costs following its decision to discontinue development of birtamimab, according to an SEC filing on Wednesday.
The Dublin-based biopharmaceutical company expects the workforce reduction to be substantially complete by the end of the fourth quarter of 2025. The restructuring aims to align costs with supporting remaining wholly-owned programs, partnered program obligations, and anticipated business development activities.
Affected U.S. employees will receive severance payments and benefits under the company’s Amended and Restated Severance Plan, while non-U.S. employees will receive statutory and contractual payments. Certain senior executives will receive accelerated vesting of portions of their stock options with extended post-employment exercise periods.
The company anticipates recognizing approximately $16 to $20 million in total costs, primarily consisting of one-time cash severance payments and non-cash share-based compensation expenses related to stock option acceleration.
As part of the workforce reduction, Prothena also announced that Carol D. Karp, Chief Regulatory Officer, and David A. Ford, Chief People Officer, will leave the company effective August 1, 2025. Both executives will receive severance benefits and stock option acceleration per their agreements.
The workforce reduction follows Prothena’s May 23 announcement that it would discontinue further development of birtamimab, one of its drug candidates.
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