Benzinga -
- Magenta Therapeutics Inc (NASDAQ: MGTA) has implemented a reduction of the company's workforce by up to 56 positions, or approximately 84%, to be substantially completed by February 17, 2023.
- Hence, the company expects to incur estimated severance and related costs of $5.4 million by the end of February 2023.
- In January, following a patient death, Magenta Therapeutics paused the Phase 1/2 dose-escalation trial of its acute myeloid leukemia (AML) therapy.
- The fatality occurred at the Cohort 3 level of the trial, where participants received MGTA-117 at a 0.08-mg/kg dose. The patient in question developed a grade 5 serious adverse event of respiratory failure and cardiac arrest resulting in death, deemed possibly related to the study drug.
- Related: Magenta Therapeutics Shares Crashes As Dose-Limiting Toxicities Observed In Lead Blood Cancer Study.
- That layoff includes nearly the entire executive bench: co-founder, CEO & president Jason Gardner, Magenta's technical chief, commercial leader, lead people officer, and clinical development head, per an SEC filing.
- CFO and operating chief Stephen Mahoney will take over as president.
- Magenta noted that the company had $112 million in cash, cash equivalents, and marketable securities at the end of last year.
- Last week, the company halted further development of its programs and started to look for strategic alternatives.
- Price Action: MGTA shares are down 1.78% at $0.83 on the last check Thursday.