CARGO Therapeutics Reports $49.9 Million Net Loss in Q2 2025, Enters Merger Agreement with Concentra Biosciences

CARGO Therapeutics, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded a net loss of $49.9 million for the quarter, compared to a loss of $44.3 million in the same period last year. For the first half of 2025, the net loss totaled $134.4 million, a substantial increase from $80.2 million in the first half of 2024. The company's accumulated deficit has now reached $447.1 million, while cash and cash equivalents, along with marketable securities, stood at $252.6 million as of June 30, 2025.

CARGO's operating expenses for the second quarter of 2025 were $52.9 million, slightly higher than the $49.3 million reported in the same quarter of 2024. The increase was primarily driven by restructuring, impairment, and costs associated with suspended programs, which amounted to $37.1 million in the latest quarter. This restructuring was part of a broader strategy that included a workforce reduction of approximately 90% announced in March 2025, following the discontinuation of its Phase 2 study of firicabtagene autoleucel (firi-cel). The company also recorded an impairment charge of $2.2 million related to long-lived assets during the quarter.

In terms of strategic developments, CARGO entered into a merger agreement with Concentra Biosciences, LLC on July 7, 2025. The agreement outlines a cash tender offer for all outstanding shares of CARGO's common stock at a price of $4.379 per share, along with a contingent value right. However, the completion of the merger is contingent upon several conditions, including the tender of a majority of the company's outstanding shares. The company has also suspended various development efforts and is exploring potential strategic alternatives, including a reverse merger or dissolution.

Operationally, CARGO's research and development expenses decreased significantly to $7.5 million in the second quarter of 2025, down from $37.5 million in the same quarter of 2024. This decline reflects the company's strategic shift and the suspension of several programs. General and administrative expenses also fell to $8.3 million from $11.9 million year-over-year, primarily due to reduced outside services and employee-related costs. The company reported a cash increase of $43.4 million during the first half of 2025, primarily driven by cash provided from investing activities, which included $241.8 million from sales and maturities of marketable securities.

Looking ahead, CARGO expects to continue incurring significant costs related to its streamlined operations and the pending merger. The company anticipates that its existing cash and marketable securities will be sufficient to fund operations for at least the next 12 months. However, if the merger does not proceed as planned, CARGO may face additional losses and could consider liquidation as a potential course of action. The company remains focused on managing its expenses and navigating the complexities of the merger process while maintaining compliance with regulatory requirements.