Insitro Announces Workforce Reduction, Extends Operational Runway to 2027

In a significant move that underscores the challenges facing the biotech industry, AI-focused company Insitro has announced a substantial reduction in its workforce. The San Francisco-based firm is cutting 22% of its employees, affecting approximately 65 individuals, as part of a strategic restructuring aimed at streamlining operations and extending its financial runway into 2027.

Streamlining Operations Amid Market Uncertainty

Insitro CEO Daphne Koller described the decision as one of the hardest days in her career, citing the "current tumultuous market environment" as a key factor driving the workforce reduction. The company, which will retain about 230 employees following the cuts, emphasized that this action is designed to ensure the advancement of its pipeline in metabolic disease and neuroscience, as well as maintain readiness for clinical trials in 2026.

"While challenging, this action amidst current macroeconomic uncertainty enables the advancement of our first-in-class pipeline in metabolic disease and neuroscience, ensures clinic readiness in 2026, and supports our continued investment in our key differentiator," the company stated in a LinkedIn announcement.

Strategic Collaborations and Pipeline Development

Despite the workforce reduction, Insitro continues to forge ahead with strategic partnerships and pipeline development. In March, the company announced a collaboration with the INSIGHT Health Data Research Hub at Moorfields Eye Hospital in London. This partnership aims to develop a novel AI foundation model for discovering new ocular biomarkers and therapeutic targets for neurodegenerative and related conditions.

Additionally, Insitro entered into three strategic agreements with Eli Lilly in October 2024, focusing on advancing new therapies for metabolic diseases, particularly metabolic-associated steatotic liver disease (MASH). These agreements include options for Insitro to in-license a clinical-stage ternary N-acetylgalactosamine (GalNAc) delivery method from Lilly, which the biotech plans to use with two of its investigational siRNA therapies targeting the liver.

The third agreement with Lilly involves a collaboration to discover and develop an antibody therapy for another metabolic disease, with Insitro taking over clinical development and commercialization after the preclinical stage.