Biotech company based in Philadelphia downsizes workforce amid industry turbulence
Philadelphia Biotech Sector Faces Challenges with Layoffs and Restructuring
The biotechnology industry in Philadelphia and South Jersey is currently experiencing a period of uncertainty, marked by significant layoffs and strategic restructuring at two cell therapy companies, Century Therapeutics and Adaptimmune.
Century Therapeutics, headquartered in Philadelphia with additional facilities in Branchburg, New Jersey, announced layoffs affecting 51% of its workforce—approximately 72 employees—as part of efforts to "right size" the company and focus on its most promising programs. This move follows the discontinuation of a phase 1 cancer study and a strategic pivot toward autoimmune diseases. The layoffs are expected to be largely complete by the third quarter of 2025 and have also involved the departure of senior executives including the Chief Development Officer and Chief Financial Officer.
Adaptimmune, also based in Philadelphia, has similarly undergone substantial changes. After opening a new U.S. headquarters in 2017 with plans for growth, the company announced in mid-2025 that it would sell several of its cell therapy divisions to US WorldMeds for $55 million, with potential additional milestone payments. This divestiture was part of a strategic review by Adaptimmune's board, signaling a shift in focus away from some of their cell therapy efforts. While some U.S. employees working on the divested therapies may be offered positions by the acquiring company, it is uncertain whether those jobs will remain in Philadelphia.
Despite these setbacks, ongoing investments in innovation infrastructure and early-stage company support suggest a broader regional commitment to sustaining and growing the biotechnology industry amidst current challenges. For instance, New Jersey is investing nearly $10 million into Strategic Innovation Centers focused on medtech and healthcare innovation, with the aim of supporting startups and promoting collaboration between private and academic sectors. This includes facilities in Camden and Mullica Hill that provide comprehensive research spaces and seed funding for startups, reinforcing New Jersey’s commitment to maintaining leadership in healthcare technology development.
The high-risk, high-reward nature of the biotechnology sector often leads to layoffs, as the path from basic scientific research to a commercially viable business is long, expensive, and filled with clinical trials and regulatory hurdles. However, the resilience of the Philadelphia biotech sector, as demonstrated by ongoing investments in innovation, offers hope for a sustainable and growing industry in the future.
Sources:
- Century Therapeutics Announces Layoffs, Strategic Pivot
- Adaptimmune to Sell Off Cell Therapy Divisions for $55 Million
- New Jersey Invests in Medtech and Healthcare Innovation
Additional Information:
- Farid's base salary was $437,800 when hired as the company's chief operations officer in May 2021, with a target bonus up to 40% of the base pay.
- Conn's base salary was $470,000 when hired as the company's chief financial officer in October 2024, in addition to a $100,000 sign-on bonus and the opportunity to hit an annual bonus plus stock options.
- Century Therapeutics' revenue for the first quarter of 2022, defined as collaboration revenue as part of a deal with Bristol Myers Squibb, was $109 million, a significant increase from $855,000 in the same quarter of 2021.
- Philadelphia's first cell and gene therapy businesses were created after basic science researchers used federal research grants to commercially develop companies.
- Pennsylvania is both an importer and exporter for pharmaceutical products, importing $1.15 billion worth from the U.K. alone in 2024, and exporting $443 million to the U.K. the same year.
- In 2024, about 7,000 people were employed in the biotechnology industry in Philadelphia, according to a report by the Chamber of Commerce for Greater Philadelphia.
Technology plays a crucial role in the strategic restructuring and innovation efforts within the biotechnology sector, as evidenced by Century Therapeutics' focus on autoimmune diseases and Adaptimmune's funding of startups with comprehensive research spaces and seed money.
Despite the recent layoffs in the Philadelphia biotech sector, ongoing investments in technology infrastructure aim to foster a sustainable and growing industry, reinforcing New Jersey’s commitment to maintaining leadership in healthcare technology development.
