AlloVir Reports $58.77 Million Net Loss for 2024, Announces Merger with Kalaris Therapeutics

AlloVir, Inc. reported a net loss of $58.77 million for the year ended December 31, 2024, a significant improvement compared to the $190.42 million net loss in 2023. This improvement is largely attributed to a decrease in research and development expenses, which fell from $133.1 million in 2023 to $12.34 million in 2024. The reduction reflects the discontinuation of three Phase 3 trials of posoleucel in December 2023, following futility analyses, and a subsequent company-wide workforce reduction of approximately 95%. General and administrative expenses also decreased, from $48.26 million to $42.92 million, primarily due to lower personnel costs. However, restructuring costs of $10.19 million were incurred in 2024 related to the workforce reduction.

The company's financial performance was significantly impacted by the decision to discontinue the posoleucel trials and the subsequent strategic review. This led to a comprehensive restructuring, including the workforce reduction, resulting in one-time severance benefits totaling approximately $13 million. The company also reported impairment costs of $18.57 million in 2023, primarily related to operating leases and implementation costs, which were absent in 2024 due to lease terminations. The company's cash, cash equivalents, and short-term investments totaled $118.3 million as of December 31, 2024.

A key strategic development was the November 7, 2024, announcement of a merger agreement with Kalaris Therapeutics, Inc. The merger is expected to close in the first quarter of 2025, subject to stockholder approvals and other customary closing conditions. Upon closing, AlloVir will change its name to Kalaris Therapeutics, Inc., and trade under the ticker symbol "KLRS." The exchange ratio in the merger agreement anticipates pre-merger Kalaris stockholders owning approximately 75.34% of the combined company and pre-merger AlloVir stockholders owning approximately 24.66%, on a fully diluted basis. The agreement also includes provisions for bridge financing, with AlloVir contributing $3.75 million in the first tranche.

AlloVir currently employs six full-time employees. The company's future operations are heavily dependent on the successful completion of the merger with Kalaris. If the merger fails, AlloVir's board of directors may pursue alternative strategic transactions, continue operating the business (requiring substantial additional funding), or dissolve and liquidate its assets. The company's 10-K filing also details numerous risk factors, including those related to the merger, the company's financial condition, capital needs, intellectual property, clinical development, regulatory review, and competition within the biopharmaceutical industry. The filing also includes extensive information on the company's intellectual property portfolio, manufacturing processes, and regulatory compliance efforts.

The company's outlook is contingent upon the successful completion of the merger with Kalaris. Should the merger not be completed, AlloVir faces significant challenges in securing additional funding to continue operations or pursue alternative strategic options. The company's limited operating history and the inherent uncertainties of clinical-stage biopharmaceutical development contribute to the overall risk profile outlined in the 10-K filing. The filing also notes that management has concluded there is substantial doubt regarding the company's ability to continue as a going concern for more than twelve months after the date the consolidated financial statements are issued.