BERKELEY, CA - Caribou Biosciences, Inc., a biotechnology company specializing in biological products, has announced a strategic shift in its operations, which includes discontinuing certain preclinical research activities and reducing its workforce. The announcement was made in a recent SEC filing.
On Monday, the company reported that it would cease development of its allogeneic CAR-NK platform and reduce its workforce by 21 positions, accounting for approximately 12% of its total employees. This move is aimed at extending the company's cash runway and reallocating resources toward its allogeneic CAR-T cell therapy platform, as well as advancing its clinical programs for oncology and autoimmune diseases.
In the filing, Caribou disclosed preliminary unaudited financials, estimating its cash, cash equivalents, and marketable securities to be at $311.8 million as of June 30, 2024. However, the company cautioned that these figures could be subject to adjustments upon completion of their quarter-end financial close process.
The workforce reduction and other cost containment measures are expected to extend Caribou's cash runway at least six months into the second half of 2026. The company anticipates incurring costs between $0.5 million to $1.0 million related to severance and transition support for the affected employees, which will likely be recognized in the third quarter of 2024.
Caribou's decision comes with a forward-looking statement, warning that actual results may differ materially from the estimates provided due to various risks and uncertainties inherent in the development of cell therapy products and clinical trials.
The company's strategic refocus reflects its commitment to advancing its most promising clinical programs and optimizing its financial resources for future milestones. The information for this news article is based on Caribou Biosciences' recent SEC filing.
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