CARGO Therapeutics Inc (CRGX) News & EventsCRGXNews & EventsCARGO Therapeutics Inc

Cargo Therapeutics to be acquired by Concentra for $4.379 per share in cash

CARGO Therapeutics has entered into a definitive merger agreement with Concentra Biosciences, whereby Concentra will acquire CARGO for $4.379 in cash per share of CARGO common stock, par value $0.001 per share, plus one non-transferable contingent value right, which represents the right to receive: 100% of the closing net cash of CARGO in excess of $217.5M; and 80% of any net proceeds received within two years following closing from any disposition of certain of CARGO's product candidates that occurs within two years following closing, each pursuant to a contingent value rights agreement. Following a strategic review process conducted with the assistance of CARGO's management and legal and financial advisors and other factors considered, the CARGO board of directors has unanimously determined that the acquisition by Concentra is in the best interests of all CARGO stockholders and has approved the Merger Agreement and related transactions. Pursuant and subject to the terms of the Merger Agreement, Concentra will commence a tender offer by July 21, 2025, to acquire all outstanding shares of CARGO Common Stock. The closing of the Offer is subject to certain conditions, including the tender of CARGO Common Stock representing at least a majority of the total number of outstanding shares, the availability of at least $217.5M of cash at closing, and other customary closing conditions. Immediately following the closing of the Offer, CARGO will be acquired by Concentra, and all remaining shares not tendered in the Offer, other than shares owned directly or indirectly by Concentra or the Company or a subsidiary thereof or validly subject to appraisal, will be converted into the right to receive the same cash and CVR consideration per share as is provided in the Offer. CARGO officers, directors and certain Company stockholders holding approximately 17.4% of CARGO Common Stock in the aggregate have signed tender and support agreements under which such parties have agreed to tender their shares in the Offer and support the merger transaction. The merger transaction is expected to close in August 2025.

Cargo suspends CRG-023 and allogeneic platform, reduces workforce by 90%

Cargo Therapeutics provided an update regarding its ongoing evaluation of strategic options following the discontinuation of FIRCE-1, a Phase 2 study of firicabtagene autoleucel. The company's board of directors has made the decision to suspend development efforts of both CRG-023 and Cargo's allogeneic platform and has appointed Anup Radhakrishnan as interim CEO to lead the company through a reverse merger or other business combination. Accordingly, Cargo has engaged TD Cowen as the company's exclusive strategic financial advisor. In connection with this' announcement, the company is also further reducing its workforce by approximately 90%. As of December 31, 2024, the Company's cash, cash equivalents and marketable securities totaled $368.1M.

Cargo Therapeutics to discontinue FIRCE-1 Phase 2 study of Firi-cel

Earlier this evening, the company stated: "CARGO Therapeutic announced that it has elected to discontinue FIRCE-1, a Phase 2 clinical study of firi-cel for patients with large B-cell lymphoma whose disease relapsed or was refractory to CD19 CAR T-cell therapy. In-line with this decision, the Company will reduce its workforce to extend cash runway and prioritize the advancement of CRG-023 to Phase 1 proof-of-concept data as well as its novel allogeneic platform. Based on an ad hoc analysis of FIRCE-1 prompted by recent safety events, the Company believes the results do not support a competitive benefit-risk profile of firi-cel for the intended patient population. While data from 51 patients with at least one post baseline scan demonstrated an overall response rate of 77% and complete response rate of 43%, the durability of CR at three months was 18%. Safety data indicated 18% of patients developed immune effector cell-associated hemophagocytic lymphohistiocytosis-like syndrome that were grade 3 or higher, including grade 4 and grade 5 serious adverse events. IEC-HS is a toxicity that is associated with CAR T-cell therapy and firi-cel in other clinical studies. The Company is implementing a workforce reduction of approximately 50% to preserve cash. Further, CARGO will continue to advance CRG-023, its tri-specific CAR T, into a Phase 1 dose escalation study and its allogeneic platform to lead vector candidate selection while evaluating its strategic options. With preliminary cash, cash equivalents and marketable securities of $368.1M as of December 31, 2024, the Company expects its cash runway to be extended into mid-2028." Shares of Cargo Therapeutics are down 76% afterhours at $3.16.