Less than two months after two FDA-related setbacks, Atara Biotherapeutics is again cutting its workforce in half. This time, it’s also hitting pause on two CAR T programs, including one affected by an FDA clinical hold in January.
For the second time this year and following a decision to pause two CAR T programs, Atara Biotherapeutics has divulged a roughly 50% workforce reduction, according to a March 3 SEC filing. The Thousand Oaks, California–based biotech disclosed in January it would let go the same percentage of employees.
Atara could have around 40 people left once both rounds of cuts—expected to be mostly complete by June—are done, given it had 159 employees as of Sept. 30, as noted in a Nov. 12 SEC filing. The biotech did not specify which locations the latest workforce reduction will affect. In addition to its headquarters in Thousand Oaks, it also has an Aurora, Colorado, location.
In its latest SEC filing, Atara disclosed it’s discontinuing development activities and pausing its ATA3219 and ATA3431 programs. The move will include ending all clinical studies evaluating ATA3219, an allogeneic anti-CD19 chimeric antigen receptor CAR T cell therapy the company had been testing for non-Hodgkin’s lymphoma and systemic lupus erythematosus.
The decisions follow two FDA-related setbacks in January. On Jan. 16, the FDA rejected Ebvallo, which is approved in Europe for patients with post-transplant lymphoproliferative disease who are positive for the Epstein-Barr virus, citing unresolved manufacturing concerns. Less than a week later, the FDA took the additional step of placing a clinical hold on Atara’s active investigational new drug applications due to the same manufacturing concerns that led to Ebvallo’s rejection. That hold affected not only Ebvallo but also ATA3219.
The company’s remaining pipeline, according to its website, includes additional next-generation allogeneic CAR T approaches for hematological malignancies and solid tumor AlloCAR T programs.
Atara could see additional significant changes in its future. In a Jan. 16 announcement, the company noted it was in active discussions with several potential parties regarding strategic alternatives that could include an acquisition, merger, reverse merger, sale of assets or other strategic transactions.
In its Nov. 12 SEC filing, Atara reported a net loss of $72.7 million for the first nine months of 2024. As of Sept. 30, it had an accumulated deficit of $2 billion and cash, cash equivalents and short-term investments totaling $67.2 million.
The company expects the latest workforce reduction will cost about $3 million for severance and related benefits but may incur other charges related to the workforce reduction, according to the March 3 filing.
