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A Baltimore startup caught the eyes of investors with promising cancer-screening technology. Now the company that bought it for $2.15 billion plans to lay off 58 workers and close the Baltimore operation by the end of March.
On Monday, Wisconsin-based Exact Sciences notified state regulators of the layoffs and closure of what began as Thrive Earlier Detection Corp.
Three researchers from Johns Hopkins founded Thrive in 2019 to commercialize their cancer screening test following the publication of its impressive cancer detection results. Thrive raised $110 million from investors by its launch, which was the biggest initial investment round by a technology developed at Johns Hopkins, according to a university newsletter.
At the time, Christy Wyskiel, the head of Johns Hopkins Technology Ventures, called it a “milestone moment in the development of Johns Hopkins’ biotech ecosystem.”
Thrive followed that up with a $257 million funding round in 2020. Later that year, Exact Sciences said it had reached a deal to acquire Thrive for up to $2.15 billion. Under the ownership of Exact Sciences, Thrive continued to operate in Baltimore in the same building as Johns Hopkins Technology Ventures.
Johns Hopkins Technology Ventures is an incubator for startups that helps experts commercialize their research, helping them to navigate patent applications, licensing and other business operations.
As of February 2022, Exact Sciences had 60 people working in a 35,000-square-foot lab at that building, according to the incubator. In a Monday notification to the Maryland Department of Labor, Exact Sciences said it was laying off 58 people and closing a facility at that address.
Despite this departure, Wyskiel said in a statement Tuesday that Johns Hopkins Technology Ventures has a “strong pipeline” of startups.
“We are always disappointed when our ecosystem loses a growing, job-creating company that was born here. That is a risk, especially when a company is acquired by a corporation located elsewhere,” Wyskiel said. “We are, however, very hopeful that the technology Johns Hopkins licensed to Thrive Earlier Detection will move forward to the marketplace to help patients.”
In a statement, Exact Sciences said the firm decided to close its Baltimore office after a “thorough analysis of our lab and manufacturing operations.” The statement said operations will shift to the firm’s locations in Cambridge, Massachusetts, and Madison, Wisconsin.
“Impacted team members will be supported with empathy and respect through the transition and will have the opportunity to apply for more than 300 open roles across the company, receive comprehensive severance packages, and outplacement services,” according to the statement.
Exact Sciences is known for its product Cologuard, an at-home screening test for colon cancer. Dallas Cowboys quarterback Dak Prescott explained how to use the Cologuard in a viral advertisement in December.
Correction: A previous headline misstated said the year in which Exact Sciences purchased Thrive. Exact Sciences announced the deal in 2020 and it closed in 2021.
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Giacomo "Jack" Bologna covers business and development at The Baltimore Banner.
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