Magenta Joins Growing List of Biotechs Reducing Workforce to Extend Cash Runway
April 14, 2022
Rare disease focused biotech Magenta Therapeutics has joined a growing list of struggling biotechs that have had to lay off employees and prioritize programs to stay afloat as investors continue to punish biotech on Wall Street.
The company has seen progress and encouraging early data from the phase 1/2 clinical trial of MGTA-117, a stem cell transplant targeted conditioning candidate, with a significant near-term clinical milestone being the anticipated data from MGTA-117 in patients with relapsed/refractory acute myeloid leukemia and myelodysplasia-excess blasts. Multiple patients have been dosed in Cohort 1 of the ongoing clinical trial.
Based on a preliminary review of the data from the trial to date, Magenta believes that the data suggest early signals of positive pharmacodynamic activity and that MGTA-117 has been well-tolerated, with no reports of unexpected or significant drug-related adverse events. The company plans to disclose a summary of clinical observations from these initial patients with respect to CD117 target binding, drug clearance, cell depletion, and tolerability in its first quarter 2022 earnings release scheduled for early May.
Due to both its early positive experience with the MGTA-117 clinical trial and in response to the uncertain capital market environment for biotechnology companies, Magenta it will increase focus on MGTA-117 while also de-prioritizing other portfolio investments. The revised operating plan includes reductions in spending related to general and administrative expenses and research platform-related investments in new disease targets, as well as pausing certain MGTA-145 investments, including the program’s planned MGTA-145 dosing and administration optimization clinical trial in healthy subjects. However, Magenta will continue development of its CD45-ADC IND-enabling activities and the MGTA-145 stem cell mobilization efforts in sickle cell disease.
The restructuring will reduce the workforce by 14 percent to extend Magenta’s cash runway into the second quarter of 2024.
“We are encouraged by our progress in the MGTA-117 clinical trial and want to proactively address our resource allocation to ensure focus on creating value for patients and all of our stakeholders,” said Jason Gardner, president and CEO of Magenta Therapeutics.
Author: Rare Daily Staff
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