Carisma Therapeutics Reports $9.3 Million Net Loss in Q1 2025, Focuses on Strategic Alternatives

Carisma Therapeutics Inc. reported a net loss of $9.3 million for the first quarter of 2025, a significant reduction from the $19.0 million loss recorded in the same period of 2024. The company's collaboration revenues increased to $3.7 million, up from $3.4 million year-over-year, primarily driven by activities under its collaboration agreement with Moderna. Total operating expenses for the quarter were $13.1 million, down from $22.9 million in the prior year, reflecting a strategic shift to reduce costs and conserve cash.

The company’s financial position has deteriorated, with cash and cash equivalents decreasing to $7.7 million as of March 31, 2025, compared to $17.9 million at the end of 2024. This decline is attributed to ongoing operational losses and a cash preservation plan initiated in March 2025, which included a workforce reduction of approximately 84%, impacting 37 employees. The total stockholders' deficit increased to $36.7 million from $27.9 million at the end of 2024, reflecting the cumulative losses and operational challenges faced by the company.

In terms of strategic developments, Carisma has ceased further development of its lead product candidates, CT-0508 and CT-0525, as part of its revised operating plans. The company is now focused on exploring strategic alternatives, including potential asset sales or partnerships, to maximize value and prepare for a possible wind-down of operations. The board of directors has prioritized payments necessary for these reduced operations, and the company is evaluating options for future funding, although it has expressed substantial doubt about its ability to continue as a going concern.

Operationally, Carisma has not generated revenue from product sales and has relied on collaboration revenues and financing activities to support its operations. The company has indicated that it will not resume research and development activities unless a strategic transaction is completed or significant additional funding is secured. The exploration of strategic alternatives may not yield any transactions or value for shareholders, and the company is currently under scrutiny from Nasdaq for non-compliance with listing rules, which could lead to delisting if not resolved.

Looking ahead, Carisma anticipates continued operating losses and significant expenses as it navigates its cash preservation plan and explores strategic alternatives. The company has indicated that its current cash reserves may only sustain operations into the second half of 2025, underscoring the urgency of its strategic review process. The future of Carisma's product candidates and overall business remains uncertain, contingent on the successful execution of its strategic plans and potential funding opportunities.