Carisma Therapeutics Implements 34% Workforce Reduction and Restructures Project Priorities
Carisma Therapeutics, based in Philadelphia, is undergoing a significant restructuring effort to realign its pipeline with a focus on therapies for fibrosis, oncology, and autoimmune diseases. As part of this initiative, the biopharma announced on December 9 that it will reduce its workforce by 34%, which translates to the elimination of 23 full-time positions, including three executives along with R&D personnel, according to an SEC filing.
The company anticipates that the workforce reduction will be largely concluded by the end of the first quarter of 2025. The three executives who are departing include Richard Morris (CEO), Eric Siegel (general counsel), and Terry Shields (senior vice president of human resources), with their last day being December 31.
This is not the first workforce reduction Carisma has experienced this year. Back in April, the company announced a cut of approximately 37% of its staff expected for the second quarter. As of December 31 last year, according to an April 1 SEC filing, the company employed 107 full-time individuals, suggesting that following the current layoffs, Carisma could be left with just 44 full-time staff.
Additionally, Carisma is terminating the development of CT-0525, a CAR-M cellular therapy designed to combat solid tumors with human epidermal growth factor receptor 2 (HER2) overexpression. While the company finished patient enrollments for the Phase I clinical trial of CT-0525, it will not proceed to the planned third cohort.
In its December 9 announcement, Carisma explained its decision to halt the development was influenced by a thorough evaluation of the competitive landscape of anti-HER2 treatments, factoring in the implications of newly approved therapies on HER2 antigen downregulation.
Moving forward, Carisma aims to channel its efforts into enhancing its macrophage engineering platform, specifically for fibrosis, oncology, and autoimmune disease therapies. The company’s initial program will target liver fibrosis, with a development candidate expected to be nominated in the first quarter of 2025.
Carisma is also continuing its collaboration with Moderna on various oncology and autoimmune programs, leveraging CAR-M technology alongside mRNA and liquid nanoparticles. The lead candidate being developed is an anti-glypican 3 CAR-M therapy, which has shown potential to provide a scalable and patient-friendly solution for treating solid tumors. Furthermore, the partnership includes two CAR-M research projects aimed at autoimmune diseases linked to distinct targets, addressing significant unmet needs.
Carisma’s president and CEO, Steven Kelly, indicated that the restructuring could enhance operational efficiency and help reduce expenses over time. The company predicts a cost of approximately .7 million related to the workforce reduction, primarily arising from one-time termination benefits.
As of its November 7 SEC filing, Carisma reported an accumulated deficit of 7.9 million as of September 30, also noting that it may continue incurring losses until it achieves significant sales from its developing product candidates. The company indicated that its cash reserves totaling .9 million as of September 30 should support planned operations through the third quarter of 2025.