Cargo Therapeutics is closing its drug development efforts, resulting in layoffs of approximately 90% of its workforce, following prior cuts earlier this year. The San Carlos-based biotech company faced setbacks after a Phase 2 clinical trial revealed dangerous side effects for patients. With the workforce reduced from around 170 to potentially 10 employees, the company's board is seeking to maximize shareholder value, possibly through a reverse merger or alternative business strategies, reflecting a stark decline since its public offering in 2023 when it reached a valuation of $1.2 billion.
"In the best interests of shareholders, we have decided to cease development operations," stated Cargo's board chairman, John Orwin, highlighting the focus on maximizing shareholder value through these layoffs.
"Our priority moving forward is to maximize value for shareholders while aiming to find a permanent home for our remaining assets for the benefit of patients," explained Orwin.
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