In a strategic move announced Wednesday alongside its fourth quarter results, biotechnology company Nkarta revealed plans for significant workforce reductions and leadership changes as it aims to extend its operational runway while advancing its autoimmune cell therapy program.
The restructuring will eliminate 53 positions, representing
approximately one-third of the company’s workforce, and will include the departure of several senior executives. Among those leaving is Chief Strategy and Business Officer Alyssa Levin, whose
responsibilities will transition to current president Nadir Mahmood, who will assume the role of principal financial and accounting officer effective March 31.
CEO Paul Hastings emphasized that the restructuring decision, which affects all organizational levels and includes a freeze on certain future hiring, was essential given current market conditions and competitive pressures. The measures are designed to allow Nkarta to continue operations into 2029 while focusing resources on clinical development.
As of December 31, Nkarta reported having 157 full-time employees and cash reserves of nearly $381 million. The company recorded a net loss of approximately $109 million for 2024.
The company’s journey began with over $100 million in private funding before its 2020 public offering, initially focusing on developing donor-derived “natural killer” cell therapies as an alternative to existing personalized cancer treatments like Yescarta and Kymriah. However, Nkarta faced challenges demonstrating that its lead therapy could achieve the same lasting benefits as personalized treatments.
Amid deteriorating stock performance and a challenging biotech funding environment, Nkarta executed a strategic pivot last year, redirecting its research efforts toward autoimmune conditions. This decision was influenced by academic research suggesting their cell therapies could potentially help restore normal immune function in patients with conditions such as lupus.
In January, Hastings acknowledged the shifting landscape in oncology drug development, noting that companies no longer have the luxury of extensive testing of different treatment regimens, as initial data releases have become increasingly critical.
Nkarta has joined a competitive field of more than a dozen companies exploring similar therapeutic approaches in autoimmune diseases. The company maintains that its off-the-shelf cell therapy solution could offer advantages over both personalized cell therapies and antibody treatments. According to Chief Medical Officer David Shook,
individualized cell therapies present practical challenges in autoimmune conditions, while popular antibody drugs like T cell engagers face both efficacy questions and safety concerns that limit their use in oncology.
The company is currently awaiting initial results from two clinical trials evaluating its NKX019 therapy across multiple autoimmune conditions, with data expected later this year. These studies will be crucial in validating Nkarta’s strategic shift and therapeutic approach.
The restructuring reflects broader challenges in the biotech sector, where companies must increasingly make difficult decisions to extend their financial resources while pursuing clinical development goals. Through these measures, Nkarta aims to maintain its focus on developing potentially transformative cellular therapies for autoimmune diseases while navigating current market realities.