Prime Medicine has announced a significant restructuring plan that includes laying off 25% of its workforce and deprioritizing its clinical-stage program for a rare genetic disease.

The company will redirect its focus towards Wilson’s disease and alpha-1 antitrypsin disease, while continuing its collaboration with the Cystic Fibrosis Foundation on treatment development.

On the same day as the layoffs announcement, Prime Medicine revealed promising results from its first clinical trial for chronic granulomatous disease, which showed improvements in blood tests and rapid engraftment in neutrophils and platelets.

This restructuring aims to significantly reduce cash needs ahead of crucial data inflection points, and will also involve a leadership change, with CFO Allan Reine set to replace CEO Keith Gottsdiener.

Analysts have characterized the trial results as 'solid proof-of-concept' for Prime's innovative gene-editing technology, which corrects gene mutations without cutting both DNA strands, and the company is considering options to license or sell this treatment.

Following the announcement of layoffs and restructuring, Prime Medicine's stock price dropped nearly 20%, continuing a downward trend that has persisted since its IPO in 2022.

As of March 31, 2025, Prime Medicine reported having over $144 million in cash and investments, providing a financial runway that extends into the first half of 2026.

The company is currently engaged in binding arbitration with Beam Therapeutics regarding a 2019 agreement related to treatment for alpha-1 antitrypsin deficiency.

Previously, Prime Medicine had announced plans to streamline its operations by focusing on fewer experimental therapies, including its treatment for chronic granulomatous disease.

The recent layoffs and restructurings at Prime Medicine reflect a broader trend in the biotech sector, as several companies, including Korro Bio, have also announced similar measures amid a challenging market environment.