Concentra Biosciences Acquires Cargo Therapeutics in Latest M&A Move

Concentra Biosciences, a serial biotech acquirer owned by Tang Capital Partners, has announced its latest acquisition in a string of recent deals. The company has secured an agreement to purchase Cargo Therapeutics, a struggling biotech firm, for $4.38 per share in cash. This move continues Concentra's aggressive expansion strategy in the biotechnology sector.

Deal Structure and Financial Details

The acquisition deal includes additional provisions beyond the per-share cash payment. Cargo's shareholders will receive non-transferable contingent value rights, entitling them to a share of any funds remaining in Cargo's coffers exceeding $217.5 million. Furthermore, shareholders will be entitled to 80% of the proceeds from any asset sales over the next two years.

Cargo Therapeutics, which launched in 2022 with $200 million in initial funding and later went public with a $281 million IPO, has faced significant challenges in recent months. The company's board conducted a strategic review before unanimously accepting Concentra's offer, highlighting the difficult position Cargo found itself in.

Cargo's Recent Setbacks

Cargo's acquisition comes on the heels of several major setbacks for the company. In early 2025, Cargo was forced to discontinue development of its lead CD22 CAR-T therapy due to serious side effects observed in a phase 2 trial. Notably, 18% of patients developed grade 3 or higher immune effector cell-associated hemophagocytic lymphohistiocytosis-like syndrome (IEC-HS), with an undisclosed number of patient deaths attributed to this condition.

Following these clinical setbacks, Cargo suspended development of its allogeneic platform, parted ways with its CEO, and implemented a dramatic 90% reduction in its workforce. The company also dropped its B-cell disease prospect CRG-023, further diminishing its pipeline.

Concentra's Acquisition Strategy

This latest deal aligns with Concentra's ongoing strategy of acquiring biotechnology companies facing financial or clinical challenges. Earlier this year, Concentra completed mergers with several struggling biotechs, including Elevation Oncology, Kronos Bio, Allakos, and most recently, IGM Biosciences.

However, Concentra's aggressive acquisition approach has not been universally successful. In March, two unnamed biotechs enacted "poison pill" defenses to ward off Concentra's advances. One of these companies, Acelyrin, opted to merge with another biotech firm instead.

As Concentra continues its biotech shopping spree, industry observers will be watching closely to see how the company integrates its new acquisitions and whether this strategy will yield long-term success in the competitive pharmaceutical landscape.