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Tuesday, February 27, 2024

Science 37 laying off 23% of staff ahead of being sold

Science 37 Holdings, a drug trials services company based in Research Triangle Park, says it laid off 73 employees, or about 23% of its staff, on Thursday.

The move comes after the company agreed last month to be sold for $38 million to diagnostics company eMed, which is based in Miami.

The company’s board of directors approved the cost cutting on Wednesday, and the employees were notified on Thursday. Science 37 expects the job cuts to be completed by the end of March.

Science 37 expects it will spend between $1 million and $1.3 million in employee severance costs and will recognize that expense in the first quarter.

The company expects that the cuts will generate annual cash savings between $12 million and $13 million. The layoffs were disclosed in a Securities and Exchange Commission filing.

Science 37 went public in 2021, giving it a $1 billion valuation, by merging with a special purpose acquisition company. That deal gave the company $235 million in cash.

Science 37 will continue to operate as a stand-alone business after the eMed acquisition.  The transaction is expected to be completed in the first quarter.

The company’s shares were trading at $5.72, up 4 cents, in Friday morning trading.

Chris Roush
Chris Roush
Chris Roush is executive editor of Business North Carolina. He can be reached at croush@businessnc.com.

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