Ultragenyx cuts workforce by 20%, targets profitability in 2027
Key Facts
Ultragenyx announced it is cutting its workforce by about 20%, to approximately 1,000 employees, as part of a plan to reduce expenses and shift to a phase focused on commercial execution. The company said research and development expenses in 2027 will fall to less than $350 million, while it aims to reduce selling, general and administrative expenses to less than $375 million. The move follows approvals for GENGLYCOS and FAYUVI and the completion of late-stage development programs, the company said. Ultragenyx described the next phase as "commercial execution and a smaller, more targeted research and development footprint." The company expects to record about $25 million in severance and restructuring expenses in the fourth quarter of 2026.
The portfolio reshaping includes ending ongoing studies of GTX-102, for Angelman syndrome, after a Phase 3 study failed. The company also decided to end the UX701 program for Wilson disease after it did not meet the study objectives required to advance to a pivotal Phase 3 trial. The decision narrows the scope of development programs the company will fund, as it says it is moving toward a greater focus on commercial products and a more selective research base. In this context, it cited approvals for GENGLYCOS and FAYUVI and the completion of late-stage programs as factors behind its shift to commercial execution. The company did not specify an additional date for ending the two studies beyond announcing that they would be discontinued.
Commercial results and liquidity underpin the new plan. Third-quarter 2026 revenue was about $173 million, compared with $160 million in the same period of 2025. The net loss narrowed to $118 million from $180 million a year earlier. Cash, cash equivalents and marketable securities totaled $401 million on September 30, 2026, while net cash used in operations reached $43 million during the quarter. These figures show the company's revenue base and available resources alongside its expense-reduction program.
In October, Ultragenyx entered into two definitive agreements to sell priority review vouchers for a total price of $413 million. It said expected net proceeds from the two transactions would be about $350 million upon completion of the sales. This potential liquidity would add to the balance the company reported at the end of September, as the plan targets lower operating costs during 2027. The company announced a restructuring plan in February 2026 that included a workforce reduction of about 10%, or approximately 130 employees. The reduction announced now marks an additional round in its cost-cutting and resource-reallocation efforts.
The chief executive said the company expects to achieve annual profitability under U.S. generally accepted accounting principles in 2027 and beyond. He linked this to reductions in headcount and expenses, alongside the launch of two products and continued growth in existing businesses. The company wrote: "With significant reductions in headcount and expenses, alongside the launch of two products and continued growth in our core business, we expect to achieve meaningful profitability in 2027 and beyond." The path outlined by management depends on meeting its targets to reduce research and development and selling, general and administrative expenses while growing commercial revenue. The statement did not provide a target figure for profitability.
For ongoing development programs, the company expects Phase 3 data from the DTX301 study in the first half of 2027. It also said it will continue discussions with regulators on a potential path for UX143. These steps keep some development programs on the company's agenda as it ends the GTX-102 and UX701 programs. The company's shares, trading under the ticker RARE, closed at $15.57 on November 5, 2026, according to EL7 data. The close came amid the announcement of job cuts and a restructuring of spending and the development portfolio.