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Sema4 to exit reproductive well being testing, lay off 500

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AI-backed genomic and medical knowledge firm Sema4 introduced this week it could exit the reproductive well being testing enterprise, shut down its lab in Stamford, Conn., and lay off about 500 workers.

The corporate mentioned it could full its departure from the section within the first quarter subsequent yr. It can now make use of about 1,100 staff. In keeping with a WARN Act Discover filed in Connecticut, the cuts have an effect on 206 workers who report back to its headquarters in Stamford, 227 who work within the Stamford lab and 15 from its Branford lab. 

The newest layoffs come months after Sema4 reduce round 250 staffers, then round 13% of its workforce, as a part of one other restructuring. Mixed with layoffs from earlier this yr, Sema4 mentioned in August it had reduce about 30% of its jobs from its legacy enterprise.

By eliminating the reproductive well being section, the corporate will double down on its GeneDx exome and entire genome sequencing service and its Centrellis knowledge platform. Sema4, which acquired GeneDx earlier this yr, is pitching the deal with these choices as a approach to attain profitability, which it now expects in 2025. 

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“We consider that our targeted industrial and R&D efforts present the fitting basis for us to focus on larger progress areas of the genomics market and optimize our knowledge and well being insights go-to-market technique,” Katherine Stueland, president and CEO of Sema4, mentioned in an announcement. “We anticipate the mixture of those efforts will assist us develop income in extra of 20% over the following a number of years. We additionally anticipate the actions we’ve undertaken will allow us to greater than double our run charge gross margin profile exiting the third quarter and scale back our annual money burn by higher than 50% in 2023.”

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THE LARGER TREND

Sema4 was spun out from Mount Sinai Well being System in 2017 and hit the general public markets by means of a merger with a particular objective acquisition firm final yr.  

Alongside the summer season job cuts, founder Eric Schadt, who had been with the corporate because it spun off, left his roles as president and chief analysis and growth officer, in addition to his place as director of the corporate.

Sema4 additionally posted outcomes for the third quarter that ended September 30. It reported income of $83.2 million in comparison with $43.2 million within the prior-year interval. The corporate posted a internet lack of $77.6 million, in contrast with earnings of $32.7 million final yr.

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Sema4 mentioned it is going to preserve its full-year income steering of $245 to 255 million. 

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