University of Pennsylvania’s Gene Therapy Program laid off staff

The University of Pennsylvania on Tuesday laid off an unspecified number of people in its gene therapy research program.

“External financial constraints, including diminished research funding from industry sponsors who have curtailed their gene therapy efforts due to economic forces, have resulted in the need for a workforce reduction,” university spokesperson Ron Ozio said in an email.

Widespread layoffs at gene therapy companies have occurred this year, in part because of low levels of funding from investors.

Penn’s gene therapy pioneer Jim Wilson warned in a speech last summer and again last month that investor interest in gene therapy start-ups was weak.

Aside from high interest rates impacting the appetite for risky investments, “there are concerns about the business model, where it’s a one-time delivery for treating really rare diseases,” he said in an Inquirer interview in November. “Is there enough earning potential there? I think that’s the crux of it.”

Gene therapy involves replacing or altering defective genes that cause what are typically rare diseases.

Ozio’s statement said the university’s layoffs were necessary “to ensure that the GTP can maintain research operations and continue its vital work toward the development of new approaches to improve the lives of patients and families coping with serious and rare diseases.”