Bicycle Cuts 25% of Staff After Genentech Ends Oncology Deal

Bicycle Therapeutics said it will eliminate roughly a quarter of its workforce after Genentech ended a five-year oncology research pact, depriving the U.K.–U.S. biotech of a key source of partner funding. The Cambridge-based company told investors the restructuring will cut operating expenses by about 30 percent and extend its cash runway into 2028, a year beyond prior guidance. Bicycle had 305 employees at end-2024; the move will affect about 75 positions split between the U.K. and Massachusetts sites. Bicycle expects to book about US$5.3 million in severance and other charges, largely in the third quarter, and to recognise a further US$6.5 million in deferred revenue from the Genentech alliance once the termination takes effect this month. Genentech paid US$30 million upfront when the collaboration began in 2020 and subsequent milestone payments lifted Bicycle’s take to US$56 million through June. The Roche unit had already pared back several projects before giving formal notice in July. Bicycle said it will now concentrate internal resources on advancing its lead Nectin-4 antibody–drug conjugate, zelenectide, into pivotal testing for metastatic urothelial cancer.