NEW YORK, July 09, 2025 (GLOBE NEWSWIRE) -- Class Action Attorney Juan Monteverde with Monteverde & Associates PC (the “M&A Class Action Firm”), has recovered millions of dollars for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report. The firm is headquartered at the Empire State Building in New York City and is investigating CARGO Therapeutics, Inc. (NASDAQ: CRGX) related to its sale to Concentra Biosciences, LLC for $4.379 in cash per CARGO share, plus ...

Group 1 - Halper Sadeh LLC is investigating CARGO Therapeutics, Inc. for potential violations of federal securities laws related to its sale to Concentra Biosciences, LLC, which is proposed at $4.379 in cash per share plus a contingent value right [1] - WNS (Holdings) Limited is also under investigation for its sale to Capgemini at $76.50 per share [2] - The firm may seek increased consideration for shareholders and additional disclosures regarding the proposed transactions [3] Group 2 - Shareholders are encouraged to contact Halper Sadeh LLC to discuss their legal rights and options without any out-of-pocket payment for legal fees [4] - Halper Sadeh LLC represents investors globally who have experienced securities fraud and corporate misconduct, recovering millions for defrauded investors [4]

MILWAUKEE, July 8, 2025 /PRNewswire/ -- The Ademi Firm is investigating CARGO (NASDAQ: CRGX) for possible breaches of fiduciary duty and other violations of law in its transaction with Concentra Biosciences.Click here to learn how to join our investigation and obtain additional information or contact us at [email protected] or toll-free: 866-264-3995. There is no cost or obligation to you.In the transaction, shareholders of CARGO will receive $4.379 in cash per share, plus one non-transferable contingent va ...

SAN CARLOS, Calif., July 08, 2025 (GLOBE NEWSWIRE) -- CARGO Therapeutics, Inc. (“CARGO” or the “Company”) (NASDAQ: CRGX), a biotechnology company that has focused on developing CAR T-cell therapies, today announced that it has entered into a definitive merger agreement (the “Merger Agreement”) with Concentra Biosciences, LLC (“Concentra”), whereby Concentra will acquire CARGO for $4.379 in cash per share of CARGO common stock, par value $0.001 per share (“CARGO Common Stock”), plus one non-transferable cont ...

PART I. FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed financial statements for Q1 2025, reflecting a significant net loss due to restructuring charges [Condensed Balance Sheets](index=5&type=section&id=Condensed%20Balance%20Sheets) Total assets decreased and liabilities increased as of March 31, 2025, primarily due to operational cash use and restructuring costs Condensed Balance Sheet Comparison (in thousands) | | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $324,811 | $345,012 | | **Total assets** | $361,957 | $414,054 | | **Total current liabilities** | $51,552 | $25,027 | | **Total liabilities** | $79,500 | $53,825 | | **Total stockholders' equity** | $282,457 | $360,229 | * A new liability, **Accrued restructuring costs**, of **$36.9 million** was recorded as of March 31, 2025, which was not present at the end of 2024[13](index=13&type=chunk) * Property and equipment, net, decreased significantly from **$11.3 million** to **$1.1 million**, reflecting impairment charges related to the restructuring[13](index=13&type=chunk) [Condensed Statements of Operations and Comprehensive Loss](index=6&type=section&id=Condensed%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) Net loss for Q1 2025 increased to $84.5 million, primarily due to a $46.3 million restructuring charge Statement of Operations Summary (in thousands, except per share data) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Research and development | $30,637 | $30,503 | | General and administrative | $11,508 | $10,303 | | Restructuring, impairment, and costs of suspended programs | $46,280 | $— | | **Total operating expenses** | **$88,425** | **$40,806** | | **Loss from operations** | **($88,425)** | **($40,806)** | | Interest income | $3,938 | $5,005 | | **Net loss** | **($84,498)** | **($35,811)** | | **Net loss per share, basic and diluted** | **($1.77)** | **($0.87)** | [Condensed Statements of Stockholders' Equity](index=7&type=section&id=Condensed%20Statements%20of%20Stockholders%27%20Equity) Stockholders' equity decreased to $282.5 million by March 31, 2025, primarily due to the $84.5 million net loss for the quarter * The **accumulated deficit** increased from **$(312.6) million** at December 31, 2024, to **$(397.1) million** at March 31, 2025, due to the **net loss of $84.5 million**[19](index=19&type=chunk) [Condensed Statements of Cash Flows](index=8&type=section&id=Condensed%20Statements%20of%20Cash%20Flows) Net cash used in operating activities increased to $37.7 million in Q1 2025, with overall cash decreasing by $2.6 million Cash Flow Summary (in thousands) | | Three months ended March 31, 2025 | Three months ended March 31, 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($37,693) | ($30,146) | | Net cash provided by (used in) investing activities | $35,042 | ($293,956) | | Net cash provided by (used in) financing activities | $38 | ($104) | | **Net decrease in cash, cash equivalents and restricted cash** | **($2,613)** | **($324,206)** | * Non-cash adjustments to reconcile net loss included an **$8.0 million impairment of property and equipment** and a **$36.9 million increase in accrued restructuring costs**[22](index=22&type=chunk) [Notes to Unaudited Condensed Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Financial%20Statements) The notes detail significant accounting policies and events, including the 2025 restructuring and its financial impact * In January and March 2025, the company approved a **restructuring** involving a **workforce reduction of approximately 90%** and the suspension of various development efforts, including the Phase 2 study of firi-cel[30](index=30&type=chunk)[31](index=31&type=chunk) * A total **restructuring charge of $46.3 million** was recorded in Q1 2025, comprising **$16.6 million in severance**, **$8.0 million in asset impairment**, and **$21.7 million in contract termination costs**[32](index=32&type=chunk)[117](index=117&type=chunk) * As of March 31, 2025, the company had **cash, cash equivalents, and marketable securities of $331.3 million** and believes this is sufficient to support operations for at least 12 months[35](index=35&type=chunk) * The company has an **at-the-market equity offering program** with **$200.0 million of capacity** available as of March 31, 2025, though no shares were sold under it during the quarter[78](index=78&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the strategic shift, major restructuring, and increased net loss in Q1 2025, with cash sufficient through mid-2028 * The company discontinued its Phase 2 study of lead program firi-cel and initiated a major restructuring, reducing its workforce by approximately **90%** and suspending pipeline development efforts[133](index=133&type=chunk)[134](index=134&type=chunk) * The company is exploring **strategic alternatives**, including reverse mergers, other business combinations, and cash sale transactions, with the help of TD Cowen as a financial advisor[134](index=134&type=chunk) Q1 2025 vs Q1 2024 Results of Operations (in thousands) | | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Research and development | $30,637 | $30,503 | $134 | | General and administrative | $11,508 | $10,303 | $1,205 | | Restructuring, impairment, etc. | $46,280 | $— | $46,280 | | **Total operating expenses** | **$88,425** | **$40,806** | **$47,619** | | **Net loss** | **($84,498)** | **($35,811)** | **($48,687)** | * As of March 31, 2025, the company had **$331.3 million in cash, cash equivalents, and marketable securities**, with an **accumulated deficit of $397.1 million**; management estimates this cash position is sufficient to fund operations to mid-2028[140](index=140&type=chunk)[162](index=162&type=chunk)[165](index=165&type=chunk) * Cash used in operating activities increased to **$37.7 million** in Q1 2025 from **$30.1 million** in Q1 2024, primarily due to the higher net loss, partially offset by non-cash restructuring charges[167](index=167&type=chunk)[168](index=168&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) As a smaller reporting company, the company is exempt from providing market risk disclosures * As a smaller reporting company, CARGO Therapeutics is exempt from providing quantitative and qualitative disclosures about market risk[187](index=187&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting * The company's disclosure controls and procedures were deemed effective as of the end of the quarter, March 31, 2025[188](index=188&type=chunk) * No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[189](index=189&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently a party to any material legal proceedings * As of the report date, the company is not involved in any material legal proceedings[192](index=192&type=chunk) [Risk Factors](index=39&type=section&id=Item%201A.%20Risk%20Factors) New and heightened risks include uncertainty of strategic transactions, failure to achieve cost savings, and activist stockholder actions * There is significant risk that the company may not be able to complete a strategic transaction (e.g., reverse merger, business combination) in a timely manner or on favorable terms, which could force it to consider dissolution[195](index=195&type=chunk)[202](index=202&type=chunk) * The company may not achieve the full anticipated cost reductions from its recent restructuring efforts, which could adversely affect its financial condition[203](index=203&type=chunk) * The company faces risks from potential activist stockholders, whose actions could interfere with the ability to conclude a corporate transaction and divert management's attention and resources[204](index=204&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities, use of proceeds, or issuer repurchases occurred during the quarter * There were no unregistered sales of equity securities, use of proceeds, or issuer repurchases of equity securities in the quarter[205](index=205&type=chunk) [Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reports no defaults upon senior securities * None[206](index=206&type=chunk) [Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company * Not applicable[207](index=207&type=chunk) [Other Information](index=41&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter * No director or officer adopted or terminated a Rule 10b5-1 trading plan during the quarter[208](index=208&type=chunk) [Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and Inline XBRL documents * The report includes required certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as Inline XBRL data files[210](index=210&type=chunk)

Core Insights - CARGO Therapeutics has decided to suspend the development of its CRG-023 product candidate and its allogeneic platform, while also reducing its workforce by approximately 90% to preserve cash and maximize shareholder value [2][7] - The company has appointed Anup Radhakrishnan as interim CEO to lead efforts towards a reverse merger or other business combination [2][7] - As of December 31, 2024, CARGO had cash, cash equivalents, and marketable securities totaling $368.1 million [3][7] Company Strategy - The Board of Directors concluded that ceasing development operations is in the best interests of shareholders, aiming to maximize value and find a permanent home for remaining assets [4] - The company is focused on expeditiously winding down operations while minimizing additional liabilities [8] Background Information - CARGO Therapeutics is a biotechnology company that develops next-generation cell therapies for cancer, with a focus on addressing limitations of existing therapies [5] - The company's pipeline included CRG-023, a tri-specific CAR T-cell therapy, and a novel allogeneic platform designed to enhance the durability and safety of treatments [5]

Financial Performance - The company incurred a net loss of $167.5 million and $98.1 million for the years ended December 31, 2024 and 2023, respectively, with an accumulated deficit of $312.6 million as of December 31, 2024[173]. - The company has no products approved for commercial sale and has not generated any revenue from product sales since its inception in December 2019[173]. - The company expects operating losses to continue to increase substantially as it expands research and development efforts and seeks regulatory approval for product candidates[175]. - The company will require additional funding to finance operations and may need to raise capital sooner than planned due to various factors[180]. - The company anticipates incurring significant commercialization expenses related to product manufacturing and marketing if any product candidates receive regulatory approval[182]. Research and Development - The company has devoted significant resources to building its organization and platform technologies, with a focus on clinical and preclinical development[174]. - The company is focusing its research and development efforts on engineered T cell therapy, which involves complex and novel technologies that may lead to significant delays and unexpected costs in product development[211]. - The regulatory approval process for the company's novel product candidates is expected to be more complex and expensive compared to existing therapies, with no assurance of successful outcomes in clinical trials[212]. - The company’s ability to develop product candidates depends on timely completion of clinical trials and regulatory approvals, which may be outside its control[201]. - The company may face significant delays or inability to commercialize product candidates if it does not achieve development milestones in expected timeframes[201]. Clinical Trials and Regulatory Risks - The company announced the discontinuation of the FIRCE-1 Phase 2 study of firi-cel due to results not supporting a competitive benefit-risk profile[179]. - The company has not yet completed a clinical trial for any of its product candidates, indicating limited experience in conducting such trials[257]. - Patient enrollment in clinical trials is significantly affected by the availability of eligible patients, particularly for orphan or rare diseases[266]. - Adverse side effects associated with product candidates could lead to delays in approval or even abandonment of clinical trials[271]. - The FDA has established the Office of Therapeutic Products to consolidate the review of cell therapy products, which may lengthen the regulatory review process and increase development costs[252]. Competition and Market Challenges - The company faces intense competition in the biotechnology and pharmaceutical industries, which may hinder its ability to discover and commercialize new products effectively[204]. - Any significant delays in clinical trials could shorten the exclusive commercialization period for product candidates, allowing competitors to enter the market first[265]. - The company may face challenges in recruiting patients due to competition from other pharmaceutical companies targeting the same diseases[267]. - The historical failure rate for product candidates in the industry is high, with many candidates failing in clinical trials despite promising early results[256]. - The company currently lacks marketing, sales, and supply chain infrastructure, which poses risks to the commercialization of its product candidates[222]. Financial Obligations and Funding - The company has substantial obligations from license agreements, including potential payments of up to $12.0 million in milestone payments and low single-digit percentage royalties on net sales under the agreement with Stanford University[190]. - Under the license agreement with Oxford, the company may be required to pay up to $13.8 million for certain milestones and up to $9.0 million for each additional target program, along with low single-digit percentage royalties on net sales[191]. - The company may need to issue equity or convertible debt securities to satisfy payment obligations, potentially causing dilution to stockholders[192]. - The company is obligated to pay the NCI up to $18.0 million and $17.8 million in milestone payments under recent license agreements[191]. - Future royalty obligations on sales of products may be significant, depending on the technology and intellectual property used[355]. Intellectual Property and Licensing - The company relies on intellectual property licensed from third parties, and any breach or termination of these agreements could harm its business operations[351]. - The U.S. government may retain rights to intellectual property developed with their funding, which could lead to loss of significant rights if obligations are not met[363]. - The company has claims in U.S. patents covering the composition-of-matter of product candidates expiring in 2033, with future protection dependent on pending applications[364]. - Obtaining and enforcing patents is costly and time-consuming, with potential delays due to health epidemics impacting operations[368]. - The complexity of licensing agreements may lead to increased financial obligations or reduced rights, impacting business operations[357]. Compliance and Regulatory Challenges - Regulatory compliance related to data privacy and security is complex and evolving, with potential penalties for violations, including fines and operational disruptions[243]. - The company faces increased scrutiny and potential fines under various data protection laws, such as the EU GDPR, which can impose fines of up to €20 million or 4% of annual global revenue[245]. - Compliance with various healthcare laws and regulations could increase operational costs and expose the company to significant penalties if violations occur[328]. - The company may face challenges in obtaining adequate reimbursement for companion diagnostic tests, which could limit the adoption of its therapies[315]. - The company is exposed to risks related to employee misconduct, including potential violations of FDA regulations and healthcare fraud laws, which could lead to significant penalties and reputational harm[331]. Cybersecurity and IT Risks - The company is increasingly dependent on information technology systems to operate its business, which includes the collection and transmission of confidential information[233]. - Despite security measures, the company's IT systems and those of its third-party contractors remain vulnerable to various cyber threats, including hacking and malware[234]. - The company has not experienced any material system failures or security breaches to date, but such events could disrupt development programs and business operations[236]. - Loss of clinical trial data could lead to significant delays in regulatory approval efforts and increase recovery costs[237]. - The company relies on third-party service providers for critical business systems, and any security incidents with these providers could have adverse consequences[239]. Market Access and Reimbursement - The successful commercialization of product candidates will depend on governmental authorities and health insurers establishing adequate coverage and reimbursement levels[312]. - Participation in governmental pricing programs could expose the company to ceiling prices, reducing potential revenue from products[313]. - The company faces significant uncertainty regarding coverage and reimbursement from third-party payors, including Medicare and Medicaid, which could impact the commercial viability of its products[316]. - High costs associated with CAR T-cell therapies may lead payors to impose restrictions on reimbursement, potentially limiting patient access and adoption of the company’s therapies[317]. - Legislative changes, such as the Inflation Reduction Act of 2022, may significantly impact drug pricing and reimbursement, requiring manufacturers to negotiate prices with Medicare[325].

Core Viewpoint - CARGO Therapeutics, Inc. (CRGX) has experienced a significant decline of 69.6% over the past four weeks, but is now positioned for a potential trend reversal as it is in oversold territory, supported by positive earnings forecasts from Wall Street analysts [1]. Group 1: Stock Performance and Technical Indicators - CRGX's stock has been under heavy selling pressure, indicated by an RSI reading of 24.6, suggesting that the selling may be exhausting itself and a trend reversal could be imminent [5]. - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 typically indicating oversold conditions [2][3]. Group 2: Earnings Estimates and Analyst Consensus - Over the last 30 days, the consensus EPS estimate for CRGX has increased by 44.8%, indicating strong agreement among analysts that the company will report better earnings than previously predicted [6]. - CRGX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [7].

Core Viewpoint - CARGO Therapeutics, Inc. (CRGX) has experienced a bearish price trend recently, losing 6% over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be increasing [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, with selling pressure likely subsiding, which supports a bullish outlook for the stock [2][4]. - A hammer pattern forms when there is a small candle body with a long lower wick, signaling that bears may be losing control and bulls are starting to gain traction [3][4]. - This pattern can appear on various timeframes, making it relevant for both short-term and long-term investors [4]. Fundamental Analysis - There has been a notable upward trend in earnings estimate revisions for CRGX, which is a strong bullish indicator, as such trends are correlated with near-term stock price movements [6]. - The consensus EPS estimate for CRGX has increased by 44.8% over the last 30 days, indicating strong agreement among analysts regarding the company's improved earnings potential [7]. - CRGX holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [8].

Core Viewpoint - Pomerantz LLP is investigating potential securities fraud or unlawful business practices by CARGO Therapeutics, Inc. and its officers or directors [1] Group 1: Company Overview - CARGO Therapeutics, Inc. conducted its initial public offering on November 10, 2023, offering 18.75 million shares at a price of $15.00 per share [2] - The company announced the discontinuation of the FIRCE-1 Phase 2 clinical study for firi-cel on January 29, 2025, due to unfavorable results regarding its competitive benefit-risk profile [2] - Following the announcement, CARGO's stock price dropped by $9.80, or 74.3%, closing at $3.39 per share on January 30, 2025 [2] Group 2: Legal Context - Pomerantz LLP is recognized for its expertise in corporate, securities, and antitrust class litigation, having a history of recovering multimillion-dollar damages for victims of securities fraud and corporate misconduct [3]