Nkarta Restructures, Shifts Focus to Autoimmune Cell Therapies
Nkarta, a South San Francisco-based biotech company, has announced a significant restructuring plan, including substantial layoffs and a strategic pivot towards autoimmune diseases. The move comes as the company aims to extend its cash runway and prioritize the development of its lead CAR NK cell therapy candidate for autoimmune conditions.
Workforce Reduction and Leadership Changes
Nkarta revealed plans to lay off approximately one-third of its workforce, impacting 53 positions or 34% of its employees. The restructuring extends to the executive level, with the company reducing its leadership team by over 50%. Notable departures include Chief Financial and Business Officer Alyssa Levin, who will leave her position effective March 31.
CEO Paul Hastings explained the decision, stating, "We believe that this decision is necessary in today's challenging financial and competitive environment to fulfill Nkarta's vision of bringing potentially life-saving cellular therapies to people with autoimmune disease."
The company expects to incur between $5.5 million and $6.5 million in costs related to the layoffs. Despite these cuts, Nkarta aims to extend its cash runway into 2029, with $380.5 million in cash on hand as of December 31, 2024.
Strategic Shift to Autoimmune Diseases
Nkarta's restructuring aligns with its pivot from oncology to autoimmune diseases, a transition that began in 2023. The company has halted work on its allogeneic CD19-directed CAR NK therapy, NKX019, for lymphoma, and is now focusing on its potential in various autoimmune conditions.
Currently, Nkarta has launched two trials of NKX019:
- A study in lupus nephritis
- A trial encompassing systemic sclerosis, idiopathic inflammatory myopathy, and ANCA-associated vasculitis
Additionally, an investigator-sponsored trial in systemic lupus erythematosus has commenced, and another in myasthenia gravis has been cleared to begin. The company anticipates initial data readouts from these trials in the second half of 2025.
Hastings emphasized the potential of Nkarta's approach, stating, "I believe that our drug is developable in oncology, because usually in Phase 1, you're discovering and you're testing different regimens. You don't have the luxury of doing that anymore. If it's the first time your data comes out, that's it."
This strategic shift places Nkarta among more than a dozen companies exploring cell therapies and antibody drugs for autoimmune conditions. The company believes its off-the-shelf CAR NK treatments could offer advantages over personalized cell therapies and antibody drugs in terms of practicality and efficacy.
References
- Nkarta to lay off staff, senior leadership, in bid to advance autoimmune cell therapy
The biotech is slashing a third of its workforce and more than half of its executive team in moves it called “necessary in today’s challenging financial and competitive environment.”
- Nkarta lays off 3rd of staff, including CFO, to fund autoimmune CAR NK program
Nkarta is laying off a third of its employees, including half of the biotech’s executive leadership, as the company diverts cash to its lead CAR NK candidate.
Explore Further
What are the professional backgrounds and previous roles of the executives being affected by Nkarta's restructuring?
How has Nkarta's financial performance influenced the decision to implement layoffs and restructure?
What trends or patterns have been observed in executive changes or layoffs within the biotech industry, particularly among companies shifting focus like Nkarta?
What potential external factors could have prompted Nkarta to significantly alter its leadership team and workforce structure?
Have other companies with similar strategic pivots recently undergone comparable personnel changes?