Astellas Pharma plans to shutter its biopharmaceutical manufacturing facility in California by the end of fiscal year 2024, as part of a broader restructuring effort. The move, which will impact about 100 employees through layoffs or transfers, comes as the Japanese pharmaceutical company faces pressure to streamline operations and reduce drug prices.
The facility, operated by Astellas Gene Therapies (formerly Audentes Therapeutics), was acquired in a $3 billion deal in January 2020. Astellas had high hopes for developing large-scale gene therapy drugs, but these ambitions were dealt a blow when a clinical trial fatality led to the suspension of a key development program.
In a strategic shift, Astellas will consolidate its gene therapy manufacturing at a newer facility in North Carolina, established in 2022. The company frames this move as an optimization of its manufacturing footprint.
As of September, at least 17 layoffs had been reported under the U.S. Worker Adjustment and Retraining Notification Act. This restructuring highlights the challenges facing biotech firms as they navigate complex drug development landscapes and economic pressures.
