Cargo Therapeutics layoffs to hit 150 employees (halting cell therapy research)

Cargo Therapeutics has announced a substantial restructuring, ceasing all development operations and laying off approximately 90% of its workforce.

According to Biospace, this decision follows disappointing trial results for its lead drug candidate, firicabtagene autoleucel (firi-cel), a CD22-directed CAR T-cell therapy intended for large B-cell lymphoma (LBCL) patients unresponsive to CD19-directed therapies.

The Phase 2 FIRCE-1 trial evaluating firi-cel was discontinued due to insufficient therapeutic advantage and safety concerns. While the therapy achieved a 77% overall response rate, only 18% of complete responses were durable at three months. Additionally, severe immune effector cell-associated hemophagocytic syndrome occurred in 18% of patients, with some cases reaching life-threatening or fatal severity.

In light of these findings, Cargo Therapeutics has suspended development of firi-cel and its allogeneic platform. The company is now exploring strategic options, including the possibility of a reverse merger or other business combinations. Chief Financial Officer Anup Radhakrishnan has been appointed as interim CEO to lead these efforts.

This restructuring marks a significant shift for Cargo Therapeutics, which had previously reduced its workforce by 50% following earlier setbacks with firi-cel. The recent layoffs further underscore the challenges faced in developing effective CAR T-cell therapies for refractory cancers.

Despite these challenges, the company reported cash, cash equivalents, and marketable securities totaling $368.1 million as of December 31, 2024. This financial position is expected to support ongoing strategic evaluations aimed at maximizing shareholder value.

According to Fierce Biotech, the biotechnology sector has seen similar restructuring efforts, with companies reassessing their pipelines and operational strategies in response to clinical trial outcomes and market dynamics.