CAR-T Pioneer Cargo Therapeutics to Be Acquired for $212 Million Amid Clinical Setbacks

Jul 09, 2025 11:29 CST Updated 11:29

Cargo Therapeutics

CAR-T Cell Therapy Developer

Concentra Biosciences

Immunotherapy Developer

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July 8,CAR-T PioneerCARGO Therapeutics Announces Definitive Agreement with Concentra Biosciences, Controlled by Tang Capital Partners, for Concentra to Acquire CARGO at $4.50 Per Share in CashThe total value of the transaction is approximately $212 million.

This transaction will enable Concentra Biosciences (owned by Tang Capital Partners)Each shareholder of Cargo will be paid $4.38 in cash, a price that is almost exactly the same as the trading price of Cargo's stock at Monday's close.Cargo's shareholders will also receive non-transferable or valuable rights, entitling them to a portion of the remaining funds in Cargo's treasury exceeding $217.5 million, as well as 80% of the proceeds from any asset sales of biotech companies over the next two years.

According to the terms of the agreement, Concentra must commence a tender offer by July 21, 2025, to acquire all outstanding shares of CARGO common stock. The completion of the offer is subject to certain conditions, including at least representingMostTender offer for CARGO common stock representing the total number of issued shares, with at least $217.5 million in cash (after deducting transaction costs and other liabilities) and other customary closing conditions upon completion of the transaction.This acquisition is expected to be completed in August 2025.

Actually,CARGO Therapeutics AcquiredAs expected.

In March this year,CARGO THERAPEUTICS ANNOUNCES,The company has fully suspended the development of its R&D pipeline and launched a large-scale program after its core product clinical trial encountered safety issues.(About 90%) layoff plan.

CARGO Therapeutics was officially established in 2021, co-founded by Dr. Crystal Mackall, a professor at Stanford University and a pioneer in the CAR-T field, along with Samsara BioCapital. The company focuses on developing "First in Class" and "Best in Class" cell therapies, as well as next-generation CAR-T cell therapies.

Since its inception, CARGO Therapeutics has attracted close attention from numerous investors.

In 2022 and 2023, the company successfully completed two rounds of financing. In January 2022, Cargo Therapeutics, Inc. received$11 million in seed financing and $32 million in bridge financingIn March 2023, Cargo successfully completed$200 Million Oversubscribed Series A Financing

The core pipeline of the company, CRG-022, once shone in the industry. This therapy consists of autologous T cells transduced with a lentiviral vector (m971-BBZ) expressing CD22-targeting CAR, aiming to address the current challenges of drug resistance and relapse faced by CAR-T cell therapies. CRG-022With its high efficacy and good safety demonstrated in Phase 1 clinical trials, it was featured in the prestigious academic journal *The Lancet*.

However, in January this year,CRG - 022High toxicity issues were exposed in the Phase 2 clinical trial, which led to CARGO Therapeutics having to decide to halt theCRG - 022The development, and immediately announced layoffs.

Despite having $368 million in cash on its balance sheet as of the end of last year (mainly from Series A financing and funds raised through its 2023 IPO), this crisis has undoubtedly placed CARGO Therapeutics in a development predicament.

AboutConcentra Biosciences

Concentra Biosciences is known for its unique acquisition strategy in the biopharmaceuticals industry, backed by Tang Capital Partners.Kevin Tang(Tang Qingnian) at the helm. Since the beginning of this year, Concentra has been on an acquisition spree, purchasing three companies, including Kronos in May and Elevation Oncology at the end of June. Last week, it also acquiredIGM Biosciences。

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