Cancer test maker Grail cuts 350 jobs as part of restructuring program
Aug 13 (Reuters) – Grail Inc (GRAL.O) said on Tuesday it has cut about 350 existing jobs as the diagnostics company focuses on the development of its flagship cancer-detection test Galleri, sending its shares up more than 11% in extended trading.
The company, which listed its shares on the Nasdaq after being spun out of gene sequencing machine maker Illumina (ILMN.O) in June, is betting that commercial partnerships of Galleri with health systems, employers and life insurance companies would fuel its near-term growth as an independent entity.
“As part of this restructure, we are reducing existing headcount and planned hires for 2024 by about 30% and substantially decreasing investment in product programs beyond Galleri,” Grail said in a statement.
Galleri is a blood test designed to detect more than 50 types of cancer and currently sold only in the U.S. Grail CEO Bob Ragusa had said in June the test detects 80% of cancers currently not screened for that result in cancer-related deaths.
Grail expects these cost reductions to extend its existing cash runway from the second half of 2026 into 2028 and anticipates reducing its burn in 2025 to $325 million.
Illumina had spun off Grail in 2016 but retained a 12% stake. It re-acquired Grail in 2021 to enter the cancer early-detection market despite competition concerns.
