Lisata Therapeutics falls after merger collapse prompts deep job cuts
LSTA•Lawsuit, termination payment and strategic review
The cancer drug developer said it has sued Kuva Labs and its unit Kuva Acquisition Corp after the merger was terminated, and is seeking damages for shareholders as well as a $2 million termination payment that it says Kuva owes under the merger agreement.
The job cuts include the termination of its executive vice president of R&D and Chief Medical Officer position.
Lisata said its board is considering options including a sale, merger, sale of company assets or winding down the business, and gave no timeline for a decision.
As of the last close, LSTA was down 44% year to date.
Shares fall after merger termination and cost cuts
Shares of biotech Lisata Therapeutics LSTA.O fell 1.9% to $1.02 premarket after the company said its planned merger with Kuva Labs was terminated and it cut about 72% of its full-time staff to reduce costs.
