Amsterdam-based biopharma AI leader BenevolentAI announced a strategic shift to concentrate on AI-driven drug discovery and proprietary pipeline revenue streams. The decision follows the discontinuation of its Knowledge Exploration Tools due to high commercialization costs and a lengthy ROI timeline. This pivot is expected to enhance shareholder returns.
The company will reduce its workforce by approximately 30%, resulting in a 20% decrease in cash burn and extending its financial runway to Q3 2025. This follows a successful collaboration with Merck KGaA, potentially worth $594m, and promising Phase Ia results for ulcerative colitis treatment BEN-8744.
BenevolentAI will also close its US office, consolidating operations in London and Cambridge, UK, to better integrate technology and scientific teams. Despite the cutbacks, the company will maintain key personnel to support ongoing collaborations and pipeline development.
The firm remains on track to sign new partnerships and out-license pipeline assets in 2024, continuing its commitment to previous guidance.
Dr. Joerg Moeller, Chief Executive Officer of BenevolentAI, said: “While these situations are always difficult, as a company we have a duty to our shareholders to optimise capital allocation in the areas where we believe the potential return is the greatest. BenevolentAI is an AI augmented drug discovery company uniting science and technology with the aim to develop life-changing medicines for patients. Therefore, I believe that focusing our organisation on furthering our drug discovery collaborations and progressing our proprietary pipeline is the best way to achieve both the goal, of delivering value creation for our shareholders and delivering innovative medicines to patients suffering from very serious medical conditions.”
Tesla to cut workforce by 10%, Drew Baglino and Rohan Patel depart