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Restructuring and Impairment Charges | 6 Months Ended
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Jun. 30, 2025
Restructuring and Related Activities [Abstract] |
Restructuring and Impairment Charges | Restructuring and Impairment Charges On December 11, 2024, the Company’s board of directors approved the discontinuation of the clinical development of the Company's reni-cel program to treat sickle cell disease and transfusion-dependent beta thalassemia (the “Discontinuation”). As a result of the Discontinuation, the Company has ceased activities towards the filing of a biologic license application and potential commercialization of reni-cel. In connection with the Discontinuation, the Board also approved a reduction in the Company’s employee workforce by approximately 180 positions, or approximately 65% (the “Reduction”). Since the Discontinuation and Reduction started in December 2024 through the six months ended June 30, 2025, the Company has incurred the following restructuring and impairment charges (in thousands):
Employee termination benefits | $ | 14,797 |
Costs for ongoing contracts and terminated contracts | 54,098 |
Acceleration of expense for change in useful life estimate and lease termination | 6,548 |
Impairment charges | 3,724 |
Total restructuring and impairment charges | $ | 79,167 |
The Company incurred the following restructuring and impairment charges for the three and six months ended June 30, 2025, which are recorded in the consolidated statements of operations (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2025
Employee termination benefits | $ | 813 |  |  | $ | 4,322 |
Costs for ongoing contracts and terminated contracts | 23,466 |  |  | 52,341 |
Acceleration of expense for change in useful life estimate and lease termination | 1,803 |  |  | 6,548 |
Impairment charges | — |  |  | 3,724 |
Total restructuring and impairment charges | $ | 26,082 |  |  | $ | 66,935 |
The actions associated with the Discontinuation and Reduction commenced in December 2024 and are expected to be substantially completed by the end of 2025. Employee Termination Benefits Employees affected by the Reduction received involuntary termination benefits pursuant to either a one-time benefit or arrangement or salary continuation for a set period of time in accordance with the Company’s Amended and Restated Severance Benefit Plan (the “Benefit Plan”). For employees who were notified of their termination in December 2024 and had no requirements to provide future services or were subject to the Benefit Plan, the Company recognized the liability for the termination benefits in full at fair value in the fourth quarter of 2024. For employees who are required to render services beyond a minimum retention period to receive their one-time termination benefits or salary continuation, the Company is recognizing the termination benefits ratably over their future service periods. The service periods began in December 2024 and all will end at various dates throughout 2025. The following table shows the liability related to employee termination benefits as of June 30, 2025 (in thousands):
| Employee Termination Benefits
Accrued employee termination benefits as of December 31, 2024 | $ | 10,475 |
Employee termination benefits charges incurred during period | 4,322 |
Amounts paid or otherwise settled during the period | (8,205) |
Accrued employee termination benefits as of June 30, 2025 | $ | 6,592 |
In total, the Company expects that it will incur approximately $15.0 million of employee termination benefit expense to implement the Reduction. Costs for Ongoing Contracts and Terminated Contracts The Discontinuation resulted in contract termination costs from vendor contracts before the end of their term, as well as costs that continue to be incurred under certain contracts with no future economic benefit to the Company. In accordance with ASC 420, the Company recognized these unavoidable contract costs when incurred for terminated contracts or at the cease-use date, as it relates to contract costs that continue to be incurred. The following table shows the liability related to costs for ongoing contracts and contract termination costs as of June 30, 2025 (in thousands):
| Contract Costs
Accrued contract costs as of December 31, 2024 | $ | 1,757 |
Contract costs incurred during the period | 52,341 |
Amounts paid or otherwise settled during the period | (16,364) |
Accrued contract costs as of June 30, 2025 | $ | 37,734 |
At June 30, 2025, $4.0 million of accrued contract costs was included in Other non-current liabilities on the Consolidated Balance Sheet. These costs are subject to significant estimation based on the Company's expectation of the costs that will continue to be incurred on the contracts, as well as negotiation of contract changes and terminations with its vendors. Changes in this estimate will be made in the period the information is known and could be material. Impairment and Accelerated Depreciation Charges In conjunction with the Discontinuation, the Company committed to a plan to actively sell specific assets within its asset group, primarily certain of its laboratory and manufacturing equipment. At March 31, 2025, the laboratory and manufacturing equipment met all of the prescribed criteria required to classify it as held for sale. The Company recorded $0.3 million of held for sale assets at their fair value at March 31, 2025, resulting in a $3.7 million impairment charge during the three months ended March 31, 2025. The sale was completed in April 2025. Additionally, the Company abandoned certain other leasehold improvements, software, and right of use assets in the second quarter of 2025, and as a result, the Company accelerated depreciation and rent expense and recorded the following in the condensed consolidated statements of operations (in thousands):
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2025
Accelerated depreciation related to leasehold improvements and software | $ | 1,072 |  |  | $ | 1,790 |
Charges related to termination of lease | 731 |  |  | 4,758 |
Total | $ | 1,803 |  |  | $ | 6,548 |

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- Definition The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 5.P.4.e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479823/420-10-S99-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/420/tableOfContent Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 420 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482017/420-10-50-1 + Details
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