PHILADELPHIA, PA — Carisma Therapeutics Inc. (Nasdaq: CARM) has announced a revised operating plan as it evaluates a range of strategic alternatives. The plan is aimed at preserving resources, reducing operational costs, and maximizing the value of its key assets, including its liver fibrosis and oncology programs, as well as its macrophage and monocyte engineering platforms.
To support this shift, the company has minimized its workforce, retaining only essential personnel to execute its strategic review. Carisma has stated that it has sufficient cash and cash equivalents to fund operations through the second half of 2025.
The strategic review will explore an array of options, such as selling, licensing, or monetizing specific assets and technologies; pursuing partnerships, collaborations, or mergers; or potentially selling the company altogether. However, Carisma acknowledged that this exploration may not result in a transaction or yield value for stockholders.
“While difficult, we believe pursuing strategic alternatives coupled with a reduction in operating costs has the potential to maximize the value of our science and other assets given the challenging funding environment,” said Steven Kelly, Carisma’s President and CEO. “We believe deeply in the potential of our liver fibrosis and oncology programs, which have shown compelling preclinical results, and are well-positioned for future development. We are focused on finding a strategic transaction that would allow this important work to continue and maximize the value of all our assets.”
Pipeline and Program Highlights
Liver Fibrosis
The company’s fibrosis program focuses on correcting an efferocytosis defect in macrophages found in the livers of patients with fibrotic disease. Using mRNA/LNP technology, Carisma’s flagship product candidate, CT-2401, aims to reverse fibrotic progression. Preclinical proof of concept for CT-2401 demonstrated anti-fibrotic efficacy in two models of advanced liver disease during 2024.
Oncology
Carisma’s oncology pipeline includes CT-1119, a CAR-monocyte designed to target mesothelin-positive solid tumors like pancreatic and ovarian cancers. Prior to pausing R&D activities under the revised plan, the company was preparing to launch a Phase 1 clinical trial for CT-1119 in China.
Collaboration with Moderna
Carisma highlighted its achievements under a partnership with Moderna, which has focused on developing in vivo CAR-M therapies. Over the course of the collaboration, Moderna nominated 12 oncology research targets, demonstrating progress in preclinical programs, including targeting glypican-3 (GPC3) in hepatocellular carcinoma. Moving forward, Moderna has ceased funding research activities, but Carisma retains the ability to advance CAR-M programs outside the nominated targets.
Corporate Adjustments
The Board of Directors approved the revised plan on March 25, 2025, in response to ongoing challenges in the funding environment. Alongside pausing all research and development activities, Carisma may seek external advisors to support the strategic review and potential preparation for winding down operations should no viable alternatives emerge.
While facing a moment of transition, the company remains committed to exploring options that could extend the viability of its platform and pipeline, providing opportunities for the critical work underpinning its scientific and therapeutic innovations to advance under new frameworks.
Carisma’s streamlined focus reflects an effort to reconcile the financial realities of the biotech sector with the potential inherent in its technology and programs.
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