San Diego-based Progenity, a biotechnology company specializating in the developiment and commercialization of molecular testing products, has announced that it will implement a reduction in force that will impact 374 Progenity and Avero, a Progenity affiliate.
The company will close its genetic testing lab in Ann Arbor, Michigan. The closure will impact 110 employees with layoffs commencing on August 6, 2021.
It is unknown how much the layoff decision was driven by the July 2020, $49 million settlement with the U.S. government for allegations of fraudulently billing federal healthcare programs for prenatal tests and providing kickbacks to physicians.
Accordingto a company spokesperson, the company is executing a "transformation strategy that will focus the company primarily on its robust R&D pipeline and better position the business for future growth. To achieve this vision, simplify its business model, and unlock shareholder value, the company will seek to reallocate resources to R&D and materially reduce operating expenditures by approximately 70%."
“It is especially difficult to say goodbye to valued team members. We are grateful for their dedication and support over these past years. We also appreciate the healthcare providers, patients and other stakeholders that have placed trust in us at critical life moments for more than a decade.”
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