By Connor Hart
Shares of Cargo Therapeutics tumbled after the company said it will cut half of its workforce, or about 58 jobs, as it stops the development of one of its drugs.
The stock fell 68%, to $4.41, in after-hours trading. Shares ended the regular session down 3.4%, at $13.19, having lost 40% of their value in the past year.
The San Carlos, Calif., company said Wednesday that the job cuts will extend its cash runway, allowing it to prioritize focus on the development of other potential treatments.
The job cuts come as Cargo Therapeutics discontinued the development of its potential treatment for certain types of blood cancer, citing results from a recent trial that don't support a competitive benefit-risk profile for the intended patient population.
Cargo employed 116 people as of Dec. 31, 2023, according to its most recent annual report filed with the Securities and Exchange Commission.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
January 29, 2025 16:58 ET (21:58 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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