Shares of Prime Medicine, Inc. (NASDAQ:PRME) fell 19.2% following the company’s announcement of a strategic restructuring focused on large genetic liver diseases and cystic fibrosis, alongside significant leadership changes.
The biotech firm plans to deprioritize its Chronic Granulomatous Disease (CGD) programs and reduce its workforce by about 25% to concentrate on its liver franchise and partnership-funded programs. Prime Medicine is advancing in vivo programs for Wilson’s Disease and Alpha-1 Antitrypsin Deficiency (AATD), aiming to file IND/CTA applications in early and mid-2026, with initial clinical data expected in 2027. The company also continues collaborations with the Cystic Fibrosis Foundation and Bristol Myers Squibb on Prime Edited CAR-T products.
Leadership changes include Allan Reine, M.D., formerly CFO, being named CEO, replacing Keith Gottesdiener, M.D. Jeff Marrazzo was appointed Executive Chair. Dr. Reine emphasized positioning Prime Medicine to fulfill the promise of Prime Editing technology for genetic diseases.
The restructuring aims to cut cash needs by nearly half through 2027, with current capital expected to last into mid-2026. This announcement coincided with positive Phase 1/2 trial data for PM359, demonstrating clinical proof-of-concept for Prime Editing.
Despite these positives, investors reacted negatively, concerned about the near-term impact of cost cuts and leadership transitions.