Atara Biotherapeutics will cut its workforce in half, as the company deals with the fallout of an FDA rejection and clinical holds.
In a March 3 SEC filing, Atara revealed a 50% reduction in its current workforce, following the company’s decision to discontinue all development activities for ATA3219 and ATA3431, including all CAR-T clinical studies evaluating ATA3219, and pause both programs. ATA3431 is a preclinical allogeneic CD19/CD20 program targeting B cell hematological and autoimmune malignancies. ATA3219 is Atara’s allogeneic CD19-targeted CAR-T therapy, being evaluated in the treatment of non-Hodgkin’s lymphoma and systemic lupus erythematosus.
The problems date back to January, when the FDA hit Atara with a complete response letter for Ebvallo, a T cell immunotherapy targeting a rare post-transplant hematologic malignancy. The rejection was solely related to GMP compliance issues at a third-party manufacturing facility. Days later, the agency placed a clinical hold on two of the company’s active INDs applications — Ebvallo and ATA3219 — citing the same third-party facility. Atara reported that it was exploring strategic alternatives including acquisition, merger, reverse merger, other business combinations, sale of assets, or other strategic transactions.
Last year, Atara was also forced to lay off employees, announcing a 25% workforce reduction in January 2024, following a phase 2 fail for its multiple sclerosis cell therapy in November 2023.
Atara expects the latest round of layoffs to be completed by June 2025 and plans to provide more details in its upcoming quarterly report.
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