Atara Biotherapeutics Reports $38M Net Income Turnaround, Driven by Revenue Growth

Atara Biotherapeutics, Inc. reported a significant financial turnaround in its latest quarterly filing, with a net income of $38.0 million for the three months ended March 31, 2025, compared to a net loss of $31.8 million during the same period in 2024. This shift was primarily driven by a substantial increase in commercialization revenue, which rose to $98.1 million from $27.4 million year-over-year. The increase in revenue is attributed to the transfer of manufacturing responsibilities for its lead product, Ebvallo (tab-cel), to Pierre Fabre, which allowed Atara to recognize revenue from previously deferred amounts.

The company's total operating expenses for the quarter were $59.3 million, slightly up from $58.6 million in the prior year. Notably, research and development expenses decreased to $27.4 million from $45.5 million, reflecting a strategic pause in the development of its allogeneic CAR T cell programs. General and administrative expenses remained relatively stable, increasing marginally to $11.5 million from $11.1 million. The company also reported a significant reduction in cash reserves, with cash and cash equivalents dropping to $13.8 million from $25.0 million at the end of the previous fiscal year.

Atara has undergone substantial organizational changes, including multiple workforce reductions totaling approximately 50% of its staff in early 2025, aimed at streamlining operations and reducing costs. The company now retains about 35 employees essential for executing its strategic priorities. These workforce reductions have resulted in restructuring charges of $9.8 million for the quarter, which included severance payments and other related costs. The company anticipates that these changes will help improve its financial position moving forward.

In terms of operational developments, Atara has made significant strides in its partnership with Pierre Fabre, which has expanded its rights to commercialize Ebvallo globally. The amended commercialization agreement allows Pierre Fabre to take over all manufacturing responsibilities, which is expected to enhance operational efficiency. However, Atara has also acknowledged the need for additional financing to support its ongoing operations, as its current cash reserves are not sufficient to fund planned activities for the next 12 months. The company is exploring various avenues for raising capital, including public and private offerings.

Looking ahead, Atara remains focused on advancing its clinical programs, particularly the ongoing Phase 3 study of Ebvallo for EBV+ PTLD. The company is also preparing for a Type A meeting with the FDA to discuss the resubmission of its biologics license application (BLA) for tab-cel, following a recent clinical hold related to manufacturing compliance issues. The outcome of these discussions and the company's ability to secure additional funding will be critical in determining its future operational and financial trajectory.