Biotech company Cargo succumbs to buyout by Concentra, agreeing to a $200 million deal
The biotechnology sector witnessed a significant development on July 8, 2025, as Concentra Biosciences announced the acquisition of Cargo Therapeutics. The deal, valued at approximately $170.70 million, marks the fifth acquisition by Concentra this year and consolidates promising CAR T-cell therapy assets under a financially stronger entity.
Cargo Therapeutics, a company specialising in developing CAR T-cell therapies for blood cancers, including aggressive large B cell lymphoma, will be acquired by Concentra for $4.379 in cash per share plus a contingent value right (CVR). The CVR offers potential additional cash to Cargo stockholders, incentivising efficient monetization or advancement of key product candidates.
The acquisition terms include 100% of Cargo’s net cash exceeding $217.5 million at closing, and 80% of net proceeds from disposing of certain product candidates within two years post-closing. This structure reflects confidence in Cargo’s product pipeline while providing downside protection for Concentra.
The acquisition is expected to bolster the development and commercialization potential of Cargo’s lead CAR T-cell therapy candidate, providing stronger financial backing and strategic resources through Concentra. The CVR arrangement could accelerate decision-making regarding clinical development or partnering/licensing opportunities.
Concentra, an investment vehicle controlled by hedge fund Tang Capital Partners, has been active in the biotech sector this year, acquiring three companies in the first half and two more, including Cargo Therapeutics, in the third quarter. The strategic focus on consolidating biotechnology assets with promising but financially pressured profiles is evident in this deal.
Cargo Therapeutics, despite its advanced pipeline, faced challenges that likely contributed to this strategic acquisition. The company had raised $200 million in an oversubscribed series A in March 2023, but faced setbacks when its lead candidate, firicabtagene autoleucel (firi-cel), a CD22 CAR T cell therapy, showed lower results in a Phase II trial compared to an earlier Phase I study.
The acquisition marks the end of Cargo Therapeutics, as determined by its board to be in the best interest of shareholders. Two months later, the remaining 90% of employees were let go by the company.
This acquisition follows resistance from Cargo Therapeutics and other biotechs in the past, highlighting Concentra's persistent efforts in the sector. In March, Pliant and Acelyrin both fought back against Concentra's advances via poison pill stockholder rights programs.
The deal, contingent on Cargo having $217.5 million in cash on hand at closing, is expected to close in August 2025. With this acquisition, Concentra continues to strengthen its position in the CAR T-cell therapy market, aiming to drive innovation and deliver promising treatments to patients.
Cargo Therapeutics, a company specializing in CAR T-cell therapies, will be acquired by the financially stronger entity Concentra, which has been actively investing in the biotech sector this year. The acquisition will bolster Concentra's position in the CAR T-cell therapy market, aiming to drive innovation and deliver promising treatments to patients.
