Carisma Therapeutics Reports $60.5M Net Loss for 2024, Collaboration Revenues Increase

Carisma Therapeutics Inc. reported a net loss of $60.5 million for the year ended December 31, 2024, compared to a net loss of $86.9 million in 2023. Collaboration revenues increased to $19.6 million in 2024 from $14.9 million in 2023, primarily due to a $5.8 million increase related to Moderna's development candidate nomination. Research and development expenses decreased to $59.7 million in 2024 from $74.1 million in 2023, largely due to reduced clinical and pre-clinical development expenses following revised operating plans that included the cessation of development for CT-0508 and CT-0525. General and administrative expenses also decreased, to $22.1 million in 2024 from $29.5 million in 2023, primarily due to lower professional fees and reduced director and officer insurance costs.

Significant changes occurred during the reporting period. In March 2024, Carisma approved a revised operating plan to focus on high-potential programs and extend its cash runway. This involved ceasing development of CT-0508 and pausing development of CT-1119. A further revision in December 2024 led to the cessation of CT-0525 development due to competitive landscape assessments. The company also implemented workforce reductions in 2024, resulting in the termination of 62 full-time employees and incurring $4.1 million in severance costs. A further reduction to six employees occurred in March 2025 as part of a cash preservation plan to explore strategic alternatives and prepare for a potential wind-down.

Strategic developments included the termination of the Manufacturing and Supply Agreement with Novartis in June 2024, resulting in a $4 million termination fee. The company also received a $2 million milestone payment from Moderna in June 2024, related to the nomination of a development candidate targeting GPC3. By February 2025, Moderna had nominated all 12 oncology research targets under their collaboration agreement, resulting in the cessation of further research activities by Carisma under that agreement and the receipt of a final $2.9 million payment from Moderna in January 2025. The company is exploring strategic alternatives, including asset sales, licensing, collaborations, or a merger or sale of the company.

As of December 31, 2024, Carisma had 46 full-time employees, 40 of whom were engaged in research and development. The company's cash and cash equivalents totaled $17.9 million. The company's independent registered public accounting firm included an explanatory paragraph in their report, raising substantial doubt about Carisma's ability to continue as a going concern. The company's cash preservation plan prioritizes payments necessary for reduced operations and the evaluation of strategic alternatives. The company also noted that it does not currently meet the requirements for continued listing on the Nasdaq Global Market.

Carisma's outlook is uncertain, contingent upon the success of its strategic review process. The company currently has no intention of resuming research and development activities independently, stating that any future resumption would depend on securing significant additional funding or completing a strategic transaction. The company acknowledges significant risks related to its financial position, the need for additional capital, the success of its strategic alternatives, and the inherent uncertainties in the biopharmaceutical industry.