HomeMarket NewsAtara Biotherapeutics Faces Setback with ATA188 in MS Treatment, Stock Plunges 50%

Atara Biotherapeutics Faces Setback with ATA188 in MS Treatment, Stock Plunges 50%

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Multiple sclerosis (multiple sclerosis) a disease that affects the nervous system, written on wooden blocks, health concept, rare disease detection and treatment, lettering on puzzle pieces

Atara Biotherapeutics (NASDAQ:ATRA) witnessed a dramatic 50% stock plunge during after-hours trading on Wednesday. This decline came in response to the company’s announcement regarding the failure of a Phase 2 study for its drug ATA188, intended for the treatment of multiple sclerosis, to meet its primary endpoint.

While Atara is currently evaluating the data to determine the next steps for the program, it anticipates ceasing the study due to the absence of any observed treatment benefit.

The biotech company has revealed its plans to make significant cutbacks in expenses related to ATA188 and redirect its focus towards its differentiated allogeneic CAR-T pipeline, along with its expanded partnership with Pierre Fabre for its treatment tab-cel. It believes that these actions will extend its cash reserve beyond Q3 2025.

Earlier in the same month, Atara had agreed to grant US commercial rights for tab-cel to Pierre Fabre and announced intentions to reduce its workforce by approximately 30% as part of a major restructuring. This overhaul was aimed at concentrating its resources on ATA188 and its differentiated allogeneic CAR-T assets. Additionally, the company also filed for a mixed shelf offering of up to $400M.

Atara Biotherapeutics: Strategic Shift Amid Adversity

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