News Summary
Vertex Pharmaceuticals has revealed plans to lay off 125 employees in Rhode Island, effective August 5, as the company consolidates operations due to the discontinuation of the VX-264 program for Type 1 diabetes treatment. The layoffs are primarily focused in Providence, with Vertex committed to supporting affected employees. Despite setbacks with VX-264, Vertex continues its research with the Zimislecel program, now in Phase 3 development, while increasing its overall workforce.
Rhode Island – Vertex Pharmaceuticals has announced plans to lay off 125 employees in Rhode Island, effective August 5. This decision comes as the company moves to consolidate its operations from three buildings into a single facility located at 225 Carolina Ave in Providence. The consolidation follows the discontinuation of the VX-264 program, a project aimed at developing a treatment for Type 1 diabetes.
The VX-264 program, which was focused on helping diabetes patients produce their own insulin through a “cells plus device” approach, failed to meet efficacy goals during clinical trials. As a result, the company has decided to eliminate specific roles directly associated with this program. In total, about 140 employees will be impacted by the program’s discontinuation, with the majority of layoffs occurring in Providence.
On June 6, Vertex filed a WARN notice with the Rhode Island Department of Labor and Training regarding the impending layoffs, which was acknowledged on June 8. Previously, Vertex operated an ‘integrated campus’ across three buildings in Providence, a situation that will change with the forthcoming consolidation.
The VX-264 program aimed at improving insulin production in diabetes patients but ultimately proved ineffective in increasing necessary markers of insulin production, leading to the decision to discontinue further development. However, Vertex is continuing its commitment to Type 1 diabetes research through another cell therapy program known as Zimislecel, which is currently in Phase 3 development.
Vertex has pledged to assist the employees affected by these layoffs by providing severance packages, outplacement support, and career counseling services. According to company representatives, Vertex remains dedicated to developing transformative therapies for individuals with Type 1 diabetes and other serious medical conditions.
Vertex Pharmaceuticals has shown notable growth in its workforce recently, increasing its employee count from 5,400 in 2023 to 6,100 in 2024, with approximately 5,100 roles based in the United States. Founded in 1989, the company has established itself as a leader in biopharmaceuticals, with both a global headquarters in Boston and an international headquarters in London.
The company is renowned for its approved therapies for serious diseases such as cystic fibrosis and sickle cell disease, as well as for managing acute pain. Despite the setbacks with the VX-264 program, Vertex’s ongoing research and development efforts reflect its goal of delivering innovative solutions to improve patient outcomes in chronic conditions, including Type 1 diabetes.
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