Concentra to buy CAR-T biotech Cargo Therapeutics

Struggling CAR-T cell therapy developer Cargo Therapeutics has entered into a definitive merger agreement with Concentra Biosciences, whereby Concentra will acquire all outstanding shares of Cargo stock in a deal initially worth roughly $217.5 million.

Per the deal, Concentra will acquire Cargo for $4.379 in cash per share of Cargo stock, plus one non-transferable contingent value right, which represents the right to receive: (i) 100% of the closing net cash of Cargo in excess of $217.5 million and (ii) 80% of any net proceeds received within two years following closing from any disposition of Cargo’s product candidates.

The merger comes after a year for Cargo. In January, the company revealed that it was discontinuing a phase 2 trial of its lead autologous CD22 CAR-T cell product candidate, firi-cel, in large B-cell lymphoma after determining that the results didn’t support a competitive benefit-risk profile. Cargo reduced its workforce by 50% to extend cash runway and prioritize the advancement of CRG-023, its tri-specific CAR-T, into a phase 1 dose escalation study.

Then, in March, the company ceased all development operations, laying of 90% of its staff. Cargo said it was exploring options, including a reverse merger or other business combination. 

Concentra Biosciences is owned by Tang Capital Partners, a life sciences-focused investment firm. Concentra is known for snapping up struggling biotech companies and selling off their assets. The company recently announced plans to buy IGM Biosciences, Elevation Oncology, Kronos Bio and Allakos.