The biotechnology industry in Philadelphia is currently facing significant uncertainty, as recent unforeseen setbacks have led to substantial layoffs at two prominent firms, prompting concerns about the future of the region’s life sciences sector.
In the past few weeks, layoffs have been confirmed by two publicly traded companies: Century Therapeutics, which is based in Philadelphia, and Adaptimmune, a U.K.-based company with a substantial presence at the Philadelphia Navy Yard.
Biotechnology industry advocates emphasize that layoffs are not uncommon in this sector, known for its high-risk, high-reward nature. The path from initial scientific research to a commercially viable business is often long and fraught with challenges, including costly clinical trials and regulatory hurdles.
Despite these challenges, the potential rewards attract serial entrepreneurs and investors alike.
However, the industry has encountered additional threats and challenges during President Donald Trump’s second term in office. Notably, the administration established the Department of Government Efficiency, or DOGE, which increased scrutiny on federal research grants that are vital to universities and other entities engaged in basic research.
These grants are crucial, often funding the foundational science that enables emerging biotechnology companies to commercialize their innovations.
For instance, many of Philadelphia’s successful cell and gene therapy firms originated from researchers who leveraged federal research funding to develop solutions with real-world applications.
According to a recent report by the Chamber of Commerce for Greater Philadelphia, approximately 7,000 people were employed in the industry last year.
Further complicating matters, the Trump administration signaled intentions to reduce funding to universities that did not comply with executive orders related to diversity, equity, and inclusion. This has raised alarms as multinational corporations rely on stable tariffs for their global supply chains, particularly within the pharmaceutical sector.
The pharmaceutical landscape in Pennsylvania is notably complex, as the state serves as both an importer and exporter of pharmaceutical products. According to U.S. Census trade data from 2024, the state imported $1.15 billion worth of pharmaceutical products from the U.K. while companies in the state exported $443 million worth of pharmaceuticals to the U.K.
A recent trade agreement negotiated by Trump with the U.K. did not encompass pharmaceuticals, although a separate deal with the European Union included provisions affecting pharmaceutical tariffs. Analysts have warned that these new tariffs could impose an additional $19 billion cost on companies within the sector. In response, Trump has sought to lower prescription drug prices by contacting manufacturers, encouraging them to sell directly to patients.
As the situation unfolds, it is critical to examine the conditions at Adaptimmune, which inaugurated its new U.S. headquarters within the Philadelphia Navy Yard in 2017, anticipating growth from 91 to 120 employees within that year.
“This new facility, intended to accommodate our U.S. headquarters and a future state-of-the-art manufacturing site, highlights our steadfast commitment to Philadelphia and our focus on bringing advanced cell therapy products to patients suffering from cancer,” stated James Noble, the then-CEO of Adaptimmune.
After Noble’s retirement in 2019, the company transitioned further into strategic restructuring. By late July 2025, Adaptimmune announced the decision to divest several of its cell therapy divisions for $55 million, a conclusion reached following a comprehensive strategic review.
The transaction will allow US WorldMeds to exclusively manufacture the cell therapies acquired from Adaptimmune, ensuring continued availability of important therapeutic options.
Employees of Adaptimmune working on these cell therapies will be offered positions with US WorldMeds, although it remains uncertain where these new jobs will be located.
In December 2024, Adaptimmune reported a global employment figure of 506, with 384 involved in research and development.
Despite its long history of innovation in solid tumor cell therapy, Adaptimmune has faced continuous financial hardship, swelling to a net loss of $47 million in the first quarter of 2025, consistent with losses that persisted from the previous year. During that same period, the company’s revenue experienced an increase, reaching $7.2 million, up from $5.6 million a year prior.
Conversely, Century Therapeutics has recently laid off 72 employees, which included 54 Pennsylvania residents, marking a significant staff reduction as part of a broader organizational restructuring strategy.
As of December 2024, Century Therapeutics employed 140 full-time and 10 part-time workers, with 131 positions dedicated to research and development. Earlier in July 2025, the company’s board approved the layoff of approximately 51% of its workforce, with implications estimated to cost $3.7 million, largely attributed to severance payouts.
The downsizing initiative is expected to be completed by the end of September, reflecting the ongoing challenges faced by the company.
Century Therapeutics has described the layoffs as a necessary step in streamlining the organization to concentrate efforts on its most promising initiatives. The decision was not taken lightly, as it entailed the departure of two executives, signaling a comprehensive reevaluation of the company’s direction.
Century’s chief financial officer and chief development officer both departed from their roles, with a restructuring of leadership expected to follow.
Despite the layoffs, Century Therapeutics has reported improved financials in some respects, noting a net income of $76 million for the first quarter of 2025, a notable shift from an operating loss of $28 million during the previous year’s equivalent period.
The firm’s revenue, primarily derived from collaboration agreements, surged to $109 million compared to $855,000 at the same time last year.
In a statement regarding the layoffs, Century Therapeutics acknowledged the quality and dedication of the affected employees, expressing gratitude for their contributions while also addressing the company’s need to focus on projects with the highest potential for success.
Despite the challenges these two firms face, the broader implications for the biotechnology sector in Philadelphia are still being assessed. The company has three office and laboratory sites within the city, with leases set to expire between 2025 and 2034, necessitating strategic planning regarding their future operations.
The biotechnology industry will continue to require support from federal grants and a stable regulatory environment to maintain growth and navigate the shifting landscape.
As employees, including those laid off, face an uncertain job market, the future of these companies, as well as the overall biotechnology industry in Philadelphia, remains a pivotal concern for stakeholders across the region.
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