In a strategic restructuring move announced Wednesday alongside its fourth quarter results, biotechnology company Nkarta revealed plans to reduce its workforce by approximately one-third and streamline its executive leadership team. The company will eliminate 53 positions and implement a hiring freeze as part of efforts to extend its operational runway into 2029.
The restructuring affects all organizational levels, with more than half of the senior leadership team being impacted. Among the departures is Chief Strategy and Business Officer Alyssa Levin, who will leave her position effective March 31. The company has appointed current president Nadir Mahmood to assume her responsibilities as principal financial and accounting officer.
CEO Paul Hastings emphasized that the reorganization prioritizes clinical development while addressing current market challenges. “This difficult decision reflects the realities of today’s demanding financial and competitive landscape as we work to bring potentially life-changing cellular therapies to individuals with autoimmune disease,” Hastings stated.
As of December 31, Nkarta employed 157 full-time staff members and maintained a cash position of nearly $381 million. The company reported a net loss of approximately $109 million for 2024.
The biotechnology firm, which raised over $100 million in private funding before its 2020 initial public offering, originally focused on developing donor-derived natural killer cell therapies as an alternative to personalized cancer treatments like Yescarta and Kymriah. However, facing challenges in demonstrating comparable durability of response and operating in a difficult funding
environment that saw its stock price decline, Nkarta shifted its focus entirely to autoimmune conditions last year.
This strategic pivot was influenced by academic research suggesting these therapies could potentially help restore normal immune system function in patients with conditions such as lupus. Nkarta has joined a growing field of companies exploring this therapeutic approach, though it believes its off-the-shelf solution offers unique advantages over both personalized cell therapies and antibody-based treatments.
According to Chief Medical Officer David Shook’s January statements, individualized cell therapies are not practical for autoimmune conditions, while T cell engagers face both efficacy questions and safety concerns that limit their use in oncology. However, Nkarta’s approach has yet to be validated in human clinical trials.
Hastings acknowledged the changing landscape in drug development during a January interview, noting that companies no longer have the luxury of extended testing periods. “In today’s environment, your first data release needs to be compelling,” he explained.
The company currently has two clinical trials evaluating its lead therapy, NKX019, in multiple autoimmune conditions, with initial results expected later this year. These studies will be crucial in determining whether Nkarta’s novel approach can deliver on its promise of combining the effectiveness of personalized cell therapies with the convenience of an off-the-shelf treatment option.
The restructuring announcement reflects broader challenges faced by biotechnology companies in the current market environment, where demonstrating clear clinical benefit and maintaining financial sustainability have become increasingly critical for survival.