Encoded’s layoffs will mostly affect its technology and early-stage research and development functions. The move is expected to keep the biotech operational well into 2026.
To extend its cash runway and help advance its pipeline, Encoded Therapeutics has let go 29% of its workforce, primarily within its technology and early-stage research and development functions, the company announced Thursday. The move will allow the San Francisco–based clinical-stage genetic medicines biotech to keep operating through the third quarter of 2026.
The company has around 200 employees, according to its LinkedIn People page, meaning the workforce reduction could affect around 60 people and leave Encoded with about 140 staffers. The biotech did not say if the cuts affect only the San Francisco location or also its Research Triangle Park facility in Morrisville, N.C.
Extending its runway will help the company achieve several key milestones, including preliminary clinical safety and efficacy for ETX101, according to the announcement. ETX101 is Encoded’s lead program, designed to address the underlying cause of Dravet syndrome, a severe form of epilepsy. The company expects to complete dosing and share preliminary safety and efficacy data in the second half of the year.
Encoded is also working toward filing an Investigational New Drug (IND) application for ETX201, which the biotech stated could become a one-time treatment approach to address the underlying cause of Angelman syndrome. The company anticipates that filing could come in 2026.
Regarding its research pipeline, the biotech noted that it expects to present data about its chronic pain and Alzheimer’s disease programs in mid-2025.
Encoded is also taking a step forward with its internal Good Manufacturing Practices facility, which will be fully operational this quarter, according to the announcement. That means that moving forward, the company can manufacture all drug substance material for ETX101 and other pipeline programs in-house.
