© Reuters.
SEATTLE – Kineta, Inc. (NASDAQ:KA), a biotech firm specializing in immunotherapies for cancer treatment, has announced a major corporate restructuring, including a significant reduction of its workforce by approximately 64%.
This move will affect seven positions, including that of CEO Shawn Iadonato, who will remain on the board and serve as a consultant until the end of 2024, along with General Counsel and Secretary Pauline Kenny.
The restructuring follows a comprehensive business review and is aimed at reducing expenses and preserving cash. It includes halting the enrollment of new patients in the Phase 1/2 VISTA-101 clinical trial for KVA12123, a therapy for advanced solid tumors, though current participants will continue. This decision was influenced by certain investors’ failure to meet funding commitments for a future private placement.
Kineta is now exploring strategic alternatives to maximize shareholder value, which could involve asset sales, company sale, licensing, merger, or liquidation. There is no certainty that this process will result in any agreements or successful transactions.
The company’s pipeline features KVA12123, an immunotherapy targeting VISTA, a checkpoint that suppresses T cell function in solid tumors. Despite setbacks, Kineta remains optimistic about the collected trial data for KVA12123, which has shown promise in preclinical models without inducing cytokine release syndrome observed with other VISTA-targeting therapies.
This announcement is based on a press release statement, and further updates will be provided only when definitive agreements are reached or deemed necessary for disclosure. The company’s financial health and future prospects remain under careful evaluation, with the market awaiting the outcomes of the strategic review.
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