The company is now pivoting to concentrate on its collaborative efforts, specifically those in partnership with Moderna (NASDAQ:MRNA). The first GPC3-targeted program from this partnership is slated to enter clinical trials in 2025. Furthermore, Carisma Therapeutics is developing a liver-fibrosis program, with an Investigational New Drug (IND) application projected for the first half of 2026.
The analyst at BTIG justified the downgrade by citing the absence of near-term catalysts and the necessity for Carisma Therapeutics to reset its pipeline. It was also noted that BTIG does not provide price targets for securities that have a Neutral rating.
This strategic shift marks a new direction for Carisma Therapeutics as it navigates through the challenges and changes in its operational focus. With a market capitalization of just $32.65 million and an overall weak financial health score according to InvestingPro, investors should closely monitor the company's execution of its new strategy. With a market capitalization of just $32.65 million and an overall weak financial health score according to InvestingPro, investors should closely monitor the company's execution of its new strategy.
In conjunction with halting the CT-0525 program, Carisma Therapeutics is undergoing a significant reorganization. This restructuring includes a workforce reduction of 34%, expected to incur approximately $2.7 million in expenses by the first quarter of 2025. Additionally, several key executives will depart by the end of December 2024, including CFO Richard Morris, General Counsel Eric Siegel, and SVP of HR Terry Shields. InvestingPro analysis shows the company maintains a healthy current ratio of 3.23, though it's currently burning through cash rapidly.
The company is now pivoting to concentrate on its collaborative efforts, specifically those in partnership with Moderna. The first GPC3-targeted program from this partnership is slated to enter clinical trials in 2025. Furthermore, Carisma Therapeutics is developing a liver-fibrosis program, with an Investigational New Drug (IND) application projected for the first half of 2026.
The analyst at BTIG justified the downgrade by citing the absence of near-term catalysts and the necessity for Carisma Therapeutics to reset its pipeline. It was also noted that BTIG does not provide price targets for securities that have a Neutral rating. This strategic shift marks a new direction for Carisma Therapeutics as it navigates through the challenges and changes in its operational focus.
In other recent news, Carisma Therapeutics Inc. has undergone significant restructuring, including a 34% workforce reduction, to focus on its in vivo macrophage engineering platform. The company has also suspended its CT-0525 program, a decision influenced by the competitive landscape and the impact of newly approved anti-HER2 therapies. Despite these changes, Carisma has reported a healthy current ratio of 3.23 and a revenue growth of 41.13% over the last twelve months.
The company has also seen changes in its board and advisory team, with Sohanya Cheng joining the Board of Directors and the appointment of liver fibrosis experts, Dr. Scott Friedman and Dr. Ira Tabas, to its Scientific Advisory Board. Additionally, Carisma's collaboration with Moderna, Inc. has led to encouraging pre-clinical data for its in vivo CAR-M therapy targeting hepatocellular carcinoma.
In terms of financial outlook, H.C. Wainwright has lowered the price target for Carisma's shares to $5.00 but maintains a Buy rating. Other firms such as D. Boral (OTC:BOALY) Capital, EF Hutton, and BTIG have also given Carisma a Buy rating, while Evercore ISI maintained an Outperform rating. However, the company faces a potential delisting from the Nasdaq Stock Market due to its market value falling below the required threshold.
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