77 jobs on the chopping block as Atara pivots pipeline strategy
Published: Aug 24, 2022
By Alex Keown
BioSpace
The promised layoffs at Atara Biotherapeutics have begun weeks after the Bay Area company announced plans to terminate 20% of its staff under a new corporate strategy focused on the innovation within the company’s pipeline.
Notices of job cuts totaling 77 employees at three company sites across California have been filed with the state, according to Endpoints. Atara first announced its plans earlier this month in its quarterly call. The company said the cuts are part of a broader strategy that will make the organization leaner and focus its attention on research and development. Additionally, it will build out manufacturing and commercialization collaborations established with FUJIFILM Diosynth Biotechnologies (FDB) and Pierre Fabre.
When the company announced its intentions to cut staff, Atara had approximately 430 employees. The decision to terminate one-fifth of the company’s headcount comes about a month after it hit a snag with its multiple sclerosis drug ATA188.
In July, the company reported that an interim analysis from the Phase II EMBOLD trial assessing ATA188 in patients with progressive multiple sclerosis revealed inconclusive data. The study will continue with a data readout planned for October 2023. Atara noted in its earnings call that it is preparing to conduct a Phase III study with the asset.
The company also saw a setback in May when Bayer terminated a two-year-old collaboration to develop an off-the-shelf T cell immunotherapy for high mesothelin-expressing tumors. That partnership focused on two CAR-T assets, ATA3271, an armored allogeneic T-cell immunotherapy, and an autologous version, ATA2271, for high mesothelin-expressing tumors such as malignant pleural mesothelioma and non-small-cell lung cancer.
The termination of the agreement comes about two months after Atara announced a study of ATA2271 was paused following the revelation of a patient death. While this sets back plans for an investigational new drug application, Atara said it intends to continue supporting the clinical development of ATA2271 through its collaboration with Merck.
In addition to ATA3271, Atara is progressing the development of ATA3219, a CAR-T program aimed at B-cell malignancies. The company anticipates a possible IND in the fourth quarter of the year.
Atara also said it intends to focus its resources on the development of its cell therapy tabelecleucel (tab-cel) for Epstein-Barr virus-driven post-transplant lymphoproliferative disease. Pascal Touchon, president and CEO of Atara, said that according to the FDA there is a potential path toward a BLA that does not require a new clinical trial. The company stated it will provide guidance on the progress of tab-cel at its next quarterly call. Outside of the United States, Atara anticipates that tab-cel will be approved for use in Europe by the end of 2022.
Atara closed out the quarter with cash and cash equivalents of $331.3 million. With the projected savings of more than 20% of its cash burn due to the layoffs, Atara reported that its current finances are enough to fund its operations into the first quarter of 2024.
“Atara’s R&D-centered strategy, clear portfolio prioritization, and purposeful partnerships are positioning us for success in reaching critical value-generating milestones for our key pipeline assets,” Touchon said during the quarterly call. “I would like to extend my sincere gratitude and thanks to Atara’s staff for their significant contributions and unwavering commitment to advancing truly innovative medicines for patients in need.”
Source: BioSpace
