Carisma Therapeutics shifts focus, cuts workforce by 34%

PHILADELPHIA - Carisma Therapeutics Inc. (NASDAQ:CARM), a biopharmaceutical company specializing in macrophage-focused therapeutics, today announced a significant restructuring of its operations. The company, currently valued at $33.35 million and trading near its 52-week low, will halt the development of its CT-0525 program and reduce its workforce by 34% to concentrate on its in vivo macrophage engineering platform. This strategic shift is aimed at developing treatments for fibrosis, oncology, and autoimmune diseases. According to InvestingPro analysis, the stock appears undervalued despite facing challenges, with 10+ additional insights available to subscribers.

Steven Kelly, President and CEO of Carisma, stated that the decision was made after a thorough review of the company's portfolio. The focus will now be on advancing the in vivo macrophage engineering platform, which has shown promise in Moderna-partnered oncology programs and the company's internal liver fibrosis program. While the company maintains a healthy current ratio of 3.23 and has achieved revenue growth of 41.13% over the last twelve months, InvestingPro data indicates the company is quickly burning through cash. Kelly emphasized that these changes are intended to streamline operations and reduce operating expenses over time, despite the difficulty of the decisions and their impact on employees.

The discontinued anti-HER2 program's Phase 1 clinical trial will not proceed to Cohort 3, following an assessment of the competitive landscape and the impact of newly approved anti-HER2 therapies. Carisma noted that the therapy has been safe and well-tolerated in trials conducted so far.

In collaboration with Moderna , Inc. (NASDAQ:MRNA), Carisma is working on several oncology programs, including an anti-glypican 3 (GPC3) in vivo CAR-M therapy. The company also has two in vivo CAR-M research programs for autoimmune diseases with Moderna, retaining rights beyond these two nominated targets.

The workforce reduction is expected to be mostly completed by the end of the first quarter of 2025, with the company incurring approximately $2.7 million in associated costs, mainly for employee termination benefits. Carisma expressed gratitude to the departing employees, including the Chief Financial Officer, General Counsel, and Senior Vice President of Human Resources, who will leave effective December 31, 2024.

This news is based on a press release statement from Carisma Therapeutics. The company's reprioritization plan reflects its expertise in macrophage biology and is set to nominate a development candidate for its liver fibrosis program in the first quarter of 2025. Carisma Therapeutics is headquartered in Philadelphia, PA, and is committed to developing innovative therapies for fibrosis, cancer, and other diseases. The stock has experienced significant pressure in 2024, with a year-to-date decline of 72.74%. For deeper insights into Carisma's financial health and growth prospects, investors can access comprehensive analysis through InvestingPro.

In other recent news, Carisma Therapeutics Inc. has seen significant changes in its financial outlook and operations. H.C. Wainwright has lowered the price target for Carisma's shares to $5.00 but maintains a Buy rating. This revision follows slower than expected enrollment rates for the company's Phase 1 trial of CT-0525, which has led to a delay in initial data collection until 2025.

Carisma has also made progress in its collaboration with Moderna, Inc., with encouraging pre-clinical data for its in vivo CAR-M therapy targeting hepatocellular carcinoma. Furthermore, the company's therapy, CT-0525, has received Fast Track designation from the FDA, potentially speeding up its development and review process.

Changes have also occurred in Carisma's 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.

Regarding analyst ratings, Carisma received a Buy rating from firms such as D. Boral (OTC:BOALY) Capital, EF Hutton, and BTIG, 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. These are the recent developments for Carisma Therapeutics.

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