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Cargo to lay off staff after CAR-T data show safety concerns

Jan 30, 2025 - statnews.com
The article provides a roundup of recent biotech news and political developments affecting the industry. Key highlights include Tectonic Therapeutics' stock surge following positive early-stage study results for a hypertension drug, and Takeda's announcement of CEO Christophe Weber stepping down, to be replaced by Julie Kim. Robert F. Kennedy Jr.'s confirmation hearing before the Senate Finance Committee is also covered, where he took a tough stance on the pharmaceutical industry and discussed Medicare drug price negotiations. Additionally, the White House budget office rescinded a memo freezing federal funding, which had caused confusion regarding programs like Medicaid.

The article also reports on Cargo Therapeutics halting development of a CAR-T treatment due to safety concerns, leading to significant staff layoffs. Vertex awaits an FDA decision on its non-opioid pain drug, suzetrigine, which has blockbuster potential despite mixed trial results. Owkin, a Paris-based biotech, has begun a Phase 1 trial of an "AI-optimized" drug candidate for solid tumors, using AI to enhance trial planning. Other topics include universities' concerns over research grants amid DEI program rollbacks and 23andMe exploring strategic alternatives to raise capital.

Key takeaways:

  • Tectonic Therapeutics shares rose sharply after announcing positive results from an early stage study of a drug for hypertension caused by heart failure.
  • RFK Jr. took a tough stance on the drug industry during his confirmation hearing, supporting Medicare drug price negotiations.
  • Cargo Therapeutics will lay off 50% of its staff after stopping development of a CAR-T treatment due to safety concerns and lackluster efficacy.
  • Vertex is awaiting FDA approval for its non-opioid pain drug, suzetrigine, which has blockbuster potential despite mixed trial results.
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