ImmunityBio will lay off 16 employees in California and said it expects to need more funding to commercialize Anktiva, approved in April for non-muscle invasive bladder cancer.
Shortly after an SEC filing noted the company’s financial challenges, ImmunityBio is laying off 16 employees in California (five in Culver City and 11 in El Segundo), according to an Aug. 30 Worker Adjustment and Retraining Notification Act notice. The biotech’s workforce reduction will be effective Oct. 29.
According to the SEC filing, as of June 30 ImmunityBio had 622 total employees. The filing did not state how many were in Culver City and El Segundo.
ImmunityBio is experiencing deficit and cash-flow challenges, according to the filing. As of June 30, the company had an accumulated deficit of $3.2 billion. It also had negative cash flows of $207.3 million during the six months ended June 30.
The challenges come shortly after the company secured its first FDA approval, for a first-in-class therapy for non-muscle invasive bladder cancer.
“The company will likely need additional capital to commercialize our approved product, and to further fund the development of, and to seek regulatory approvals for, our other product candidates,” ImmunityBio stated in the filing.
The company also said in the filing that it believes there is substantial doubt about its ability to continue without additional funding. However, it went on to note that its existing cash, cash equivalents and investments in marketable securities; sales of approved product; capital to be raised through equity offerings; and potential ability to borrow from affiliated entities will fund operations through at least 12 months.
Part of the financial strain might have come from the fact that ImmunityBio had to wait longer than hoped to see Anktiva hit the market. In May 2023, the FDA rejected its biologics license application (BLA) for the drug. The company received a complete response letter indicating the FDA could not approve the BLA in its form at the time due to issues with a third-party contract manufacturer. Just a few months later, in September 2023, the company laid off 48 employees.
In August, ImmunityBio announced Anktiva is widely available to patients through commercial and government insurance programs and that it expects to expand its bladder cancer program globally, including in the European Union and India.
Correction Sept. 8. This story has been updated from its original version to correct the location of the 16 employees being let go in California, as they’re not only in El Segundo but also in Culver City. BioSpace regrets the error. The story also now specifies the number affected for each city.
