Carisma Therapeutics announces restructuring, 34% workforce reduction

Carisma Therapeutics (CARM) announced a strategic reprioritization of its pipeline, cessation of development of CT-0525, and a reduction in the workforce by 34%. These measures will enable Carisma to focus its resources on advancing its in vivo macrophage engineering platform for the development of fibrosis, oncology and autoimmune disease therapies. This decision aligns Carisma’s efforts with next-generation, high-potential programs addressing significant unmet patient needs while enhancing operational efficiency. “Following a comprehensive review of our portfolio, we have made the strategic decision to prioritize advancing our in vivo macrophage engineering platform,” said Steven Kelly, President and Chief Executive Officer of Carisma. “The compelling data generated by both the Moderna-partnered in vivo CAR-M oncology programs as well as our internal liver fibrosis program underscore the potential to revolutionize treatment paradigms with an innovative and patient-centric approach.” “These strategic initiatives, re-directing our investments to the in vivo macrophage engineering platform, discontinuing development of our anti-HER2 program and reducing our workforce, aim to streamline our operations and reduce operating expenses over time,” Kelly continued. “While these decisions are very challenging, they are made in the best interest of our shareholders. We remain deeply grateful for the significant contributions of the employees departing Carisma.” As part of the strategic restructuring, Carisma will reduce its workforce by 34%. The company expects the reduction in workforce to be substantially complete and to pay the majority of related reduction in workforce amounts by the end of the first quarter of 2025. The company is committed to supporting affected employees through this transition. As part of the workforce reductions, our Chief Financial Officer, Richard Morris, our General Counsel, Eric Siegel, and our Senior Vice President, Human Resources, Terry Shields, will leave the company effective December 31, 2024. Carisma expresses gratitude for their contributions. The company expects to incur approximately $2.7M in connection with the reduction in the workforce, which primarily represents one-time employee termination benefits directly associated with the workforce reduction.