Philadelphia-based Carisma Therapeutics Inc. (NASDAQ:CARM), a biopharmaceutical company specializing in pharmaceutical preparations, announced significant changes to its board of directors. On June 26, 2024, board members Regina Hodits, Ph.D., and Björn Odlander, M.D., Ph.D., tendered their resignations effective June 30, 2024.
The departures were attributed to other professional commitments and not due to any disagreements regarding the company's operations, policies, or practices.
In response to these departures, the board has elected Marella Thorell and David Scadden, M.D., as directors, effective June 30, 2024. Both Thorell and Dr. Scadden will serve as Class III directors until the 2026 annual meeting of stockholders, with Thorell taking the role of chair of the audit committee and Dr. Scadden chairing the science committee.
According to the company's non-employee director compensation policy, Thorell and Dr. Scadden will receive annual cash compensation of $40,000 for their service on the board, in addition to compensation for committee service, and will be reimbursed for reasonable business expenses incurred in connection with their duties. Furthermore, each new director has been granted an option to purchase 38,700 shares of Carisma Therapeutics' common stock at the closing price on July 1, 2024. These options will vest over a three-year period, contingent upon their continued service to the company.
Carisma Therapeutics, which operates under the organization name 03 Life Sciences, has confirmed that neither Thorell nor Dr. Scadden has any direct or indirect material interest in any transaction that would require disclosure under SEC regulations. The company will also enter into its standard indemnification agreement with both new directors, as outlined in the company's previous filings.
This announcement is based on an SEC filing.
In other recent news, Carisma Therapeutics Inc. has been making significant strides in its operations. The biopharmaceutical company was recently granted Fast Track designation by the U.S. Food and Drug Administration (FDA) for its novel cellular therapy, CT-0525. This therapy, aimed at treating solid tumors expressing high levels of the human epidermal growth factor receptor 2, is expected to have its initial data ready by the end of 2024.
Carisma has also initiated a Phase 1 clinical trial for CT-0525, marking the first time a chimeric antigen receptor-monocyte is being evaluated in humans for this type of cancer. The trial is designed to assess safety, tolerability, and manufacturing feasibility.
On the analyst front, H.C. Wainwright has reiterated a Buy rating for Carisma, maintaining an $8.00 price target. Evercore ISI, on the other hand, has reduced its price target to $4.00, while still maintaining an Outperform rating. BTIG has initiated coverage on Carisma with a Buy rating and a $6.00 price target.
In the company's personnel news, Carisma recently appointed Eugene P. Kennedy, M.D., as its new Chief Medical Officer. Dr. Kennedy brings more than 15 years of experience in clinical development, particularly in oncology and immuno-oncology, to the team.
InvestingPro Insights
As Carisma Therapeutics (NASDAQ:CARM) welcomes new board members and continues to position itself in the dynamic pharmaceuticals market, a glance at the company's financial health and market performance offers valuable context. According to InvestingPro data, Carisma Therapeutics holds a market capitalization of $63.14 million, with a notable revenue growth of 22.99% over the last twelve months as of Q1 2024. Despite these positive indicators, the company's gross profit margin stands at a concerning -397.22%, reflecting operational challenges.
An InvestingPro Tip highlights that Carisma Therapeutics holds more cash than debt on its balance sheet, which could provide some financial flexibility in its operations. However, analysts do not anticipate the company will be profitable this year, and the valuation implies a poor free cash flow yield. For investors looking to delve deeper into Carisma's financials and market prospects, there are additional InvestingPro Tips available, which can be accessed through the company's dedicated InvestingPro page. For those interested in a comprehensive analysis, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of insights that could inform investment decisions.
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