The California-based company saw its stock drop 8.7% to $21.47 during midday trading, compounding a difficult year that has seen its valuation plummet by 51%. The restructuring will result in the layoffs of approximately 130 employees and is expected to incur a one-time charge of $50 million throughout 2024.

Financial Performance and Outlook

While revenue climbed to $207 million in the fourth quarter—beating analyst estimates of $198.6 million—the company’s bottom line missed the mark. Ultragenyx reported a net loss of $129 million, or $1.29 per share, which was deeper than the $1.09 per share loss projected by analysts polled by FactSet.

Management framed the cuts as a necessary step toward long-term financial stability. According to the company, the reorganization streamlines operations to support a 2026 revenue target between $730 million and $760 million, excluding potential gains from upcoming product launches.