Cargo Therapeutics Suspends Operations, Cuts Workforce Amid Strategic Shift Toward Reverse Merger” ###

Massive Workforce Reduction:
Cargo Therapeutics announced a 90% reduction in its workforce after ceasing all research and development programs1 2 6.

Pipeline Discontinuation:
The company has suspended development of its CRG-023 drug candidate and its allogeneic CAR-T platform following the earlier termination of its lead Phase 2 trial candidate, firicabtagene autoleucel (firi-cel), due to safety concerns and insufficient benefit-risk profile1 2 9.

Leadership Change:
Anup Radhakrishnan, formerly COO and CFO, has been appointed as interim CEO, replacing Gina Chapman, as the company shifts focus to strategic alternatives like a reverse merger1 6 13.

Financial Position:
As of December 31, 2024, Cargo reported a strong cash reserve of $368.1 million but faces significant challenges in maintaining shareholder value and operational viability9 10 11.

Strategic Focus:
Cargo is pursuing a reverse merger or business combination to preserve its status as a Nasdaq-listed shell company and maximize shareholder value8 10 15.

CAR-T Therapy Setbacks:
The decision marks a significant setback for the company, which initially aimed to address challenges in cell therapy durability, safety, and availability with innovative platforms6 10.