PHILADELPHIA, PA — Carisma Therapeutics Inc. (NASDAQ: CARM) recently disclosed its financial results for the fourth quarter and the full year concluding on December 31, 2023, outlining a plan to streamline its business operations.
The company reported promising clinical data from Study 101 for CT-0508, a CAR-M treatment targeted at HER2-positive solid tumors. Steven Kelly, President and CEO of Carisma, expressed confidence in CT-0525, another CAR-M treatment, stating that it shows potential to address areas of significant unmet need in patient care. Emphasizing the company’s intent to concentrate its resources on CT-0525, Kelly stated that the drug’s advancement is backed by sound preclinical data and the promising effects of monocyte-based treatments.
Carisma will also be reviewing its project pipeline, prioritizing those efforts that show the most promise and have the potential to reach significant milestones in the near future. This is part of the company’s strategic plan to manage expenses, streamline operations, and restructure its workforce.
At the end of 2023, Carisma reported cash and cash equivalents of approximately $77.6 million. Research and development expenses for the year reached $74.1 million, increasing by $17.5 million from the previous year. This rise primarily results from costs associated with the pre-clinical development of CT-0525, an increase in personnel due to staff expansion in research and development, greater facilities, and laboratory expenses from increased clinical and pre-clinical work, and growth in pre-clinical activities towards submission of IND for CT-0525.
In light of these shifts in focus, the company anticipates decreases in research and development expenses during 2024 due to workforce reductions, prioritization of CT-0525, and a pause in the development of CT-1119. However, Carisma expects expenses to eventually rise in subsequent years as it proceeds with clinical trials and the potential advancement of additional product candidates.
Administrative expenses concluded at $29.5 million for the full year, significantly higher than the preceding year. This was primarily owing to increases in personnel costs and professional fees resulting from the company’s merger with Sesen Bio, Inc. in March 2023, as well as increased operating expenses due to its public company status. The expenses also included legal fees and communication expenses associated with the merger, protection of the company’s intellectual property, and insurance and tax costs.
However, the company expects general and administrative costs to decline in 2024, as the previous fiscal year included many non-recurring expenses related to the merger, and the company is aiming to reduce its workforce and related expenditure.
The net loss for 2023 totaled $86.9 million, surpassing the $61.2 million loss in 2022. Despite this, Carisma anticipates that its cash reserves, combined with expected cost savings from its operational revisions, should suffice to sustain planned operations into the third quarter of 2025.
The decisions made by Carisma illustrate the constant balance biotech companies must strike between scientific innovation and financial sustainability. As the company hones its focus on its most promising treatment and ushers in operational changes, industry watchers will be eagerly observing whether these strategic shifts can support Carisma’s pioneering work in CAR-M treatment while managing its financial health.
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