CARGO Therapeutics (CRGX, Financials) saw its stock jump 18.9% pre-market to $4.52 on Wednesday after announcing it would suspend development of its CRG-023 product and allogeneic platform, along with cutting approximately 90% of its workforce to preserve cash and seek a strategic business combination.
The decision follows the company's discontinuation of the Phase 2 FIRCE-1 study for firicabtagene autoleucel, according to a statement. Anup Radhakrishnan has been appointed interim chief executive officer to lead the company's efforts in pursuing a reverse merger or other transaction. CARGO has engaged investment bank TD Cowen as its exclusive strategic financial advisor, the company said in a statement.
As of December 31, 2024, CARGO held $368.1 million in cash, cash equivalents, and marketable securities. The company said the job cuts and development suspension aim to maximize value for shareholders while aiming to find a permanent home for remaining assets.
Based in San Carlos, California, CARGO has been researching next-generation cell treatments aimed at B-cell malignancies. The business has a universal allogeneic CAR T platform in addition to CRG-023, a tri-specific CAR T-cell treatment aiming at CD19, CD20, and CD22.
Neither a chronology for a prospective deal nor specifics on probable purchasers for the company's assets were given.
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