Processing Your Payment

Please do not leave this page until complete. This can take a few moments.

August 16, 2022

Sema4 to lay off 13% of workforce, close Branford laboratory; founder Eric Schadt resigns

YEHYUN KIM / CTMIRROR.ORG Sema4's office in Branford.
By Andrew Larson

Sema4 Holdings Corp., a publicly traded health information company based in Stamford, said it plans to eliminate about 250 positions, roughly 13% of its workforce.

The restructuring was announced Monday as part of Sema4’s second quarter financial results.

The company has eliminated about 30% of its positions, including layoffs that occurred during the first half of the year.

Sema4 plans to move its hereditary cancer testing operations from Stamford to Gaithersburg, Maryland at the end of the third quarter, according to the announcement.

It’s also leaving the somatic tumor-testing business and will close its clinical laboratory in Branford effective Dec. 31. That business line represents less than 1% of the company’s revenue and has annual expenses of about $35 million.

Moving forward, Sema4 will focus on building the company’s health-insights business.

CEO Katherine Stueland said the company is seeing strong growth in its reproductive health and recently acquired pediatrics and rare disease business.

The company is on track to meet its goal of cutting costs of about $50 million in 2022. It aims to achieve more than $150 million in annual savings and roughly $200 million in cumulative savings by the end of 2023, according to the announcement.

During the second quarter, the company experienced “strong underlying demand for [its] core testing services, including carrier screening, non-invasive prenatal screening and pediatric and rare disease franchises,” said Rich Miao, interim CFO.

Total revenue for the second quarter of 2022 was $36.2 million compared to $47 million in the second quarter of 2021. However, the company reported a second-quarter net loss of $85.7 million.

The company expects second-half 2022 revenue in the range of $154 million to $164 million.

Sema4 also announced a leadership change. Founder Eric Schadt resigned from his roles as president and chief research and development officer, as well as his position as a director of the company, effective Monday.

Matthew Davis, former head of artificial intelligence and data at biotech company Invitae Corp., will become Sema4’s chief technology and product officer. 
 

Sign up for Enews

Most Recent

Most Recent

0 Comments

Order a PDF