Dewpoint Therapeutics, a biotech startup focused on biomolecular condensates, implemented significant workforce reductions Thursday, cutting approximately 70% of its staff as the company refocuses its operations and drug pipeline amid funding challenges.
The Boston-based company, which previously maintained offices in Boston, Dresden, and Frankfurt, Germany, will consolidate operations to its Boston location following the layoffs. CEO Ameet Nathwani stated that Dewpoint is pushing its lead therapy for gastric cancer into clinical trials by the end of the year and is in the final stages of raising private funding.
Financial Pressures Drive Restructuring
Despite securing $287 million from 16 investors across three funding rounds—$60 million in Series A (2019), $77 million in Series B (2020), and $150 million in Series C (2022)—the company cited a high burn rate as the primary reason for scaling back operations. The substantial funding proved insufficient to support a workforce of over 130 employees and a pipeline comprising five or more early-stage development programs.
According to internal estimates, the average cost to bring a small-molecule drug candidate to investigational new drug (IND) stage ranges between $9 million and $29 million, potentially totaling $180 million for the full pipeline development.
Lead Cancer Program Takes Priority
Dewpoint will now prioritize clinical development of its lead candidate, DPTx3186, a beta-catenin inhibitor targeting the WNT signaling pathway. The compound is initially being developed for gastric cancer, with further applications planned in colorectal cancer, lung cancer, and breast cancer. The breast cancer application operates under the code name DPTx3496, though it represents the same compound as DPTx3186.
The company expects to advance DPTx3186 into clinical trials by the end of 2025, marking a critical milestone for the restructured organization.
Strategic Partnerships Remain Intact
Despite the workforce reduction, Dewpoint maintains several key partnerships that provide potential revenue streams. The company's ALS candidate targeting TDP-43 remains licensed to Mitsubishi Tanabe Pharma, with potential milestone payments reaching up to $485 million.
Additionally, Bayer Pharma exercised a license option in late 2024 for Dewpoint's dilated cardiomyopathy program, providing another source of partnership revenue. The status of a MYC-pathway modulator discovered through a compound screening partnership with Evotec remains uncertain following the restructuring.
Funding Strategy Moving Forward
CEO Nathwani indicated that a new funding round is in preparation to support the continued development of DPTx3186 and advance selected candidates currently in lead-optimization stage. The streamlined operations and focused pipeline approach aim to extend the company's runway while advancing its most promising therapeutic candidates toward clinical development.
