Lisata cuts 72% of workforce and sues Kuva after merger collapse

Lisata, a solid tumor biotech, announced it is laying off roughly 72% of its employees, including its chief medical officer, as it reassesses its future.

The cuts follow the collapse of a planned acquisition by imaging company Kuva Labs. Kuva first announced the deal in January and had licensed Lisata’s peptide delivery platform, certepetide, to complement its NanoMark imaging technology. The agreement was revised in March, with Kuva offering $5 per share plus an additional $1 per share if a regulatory filing for certepetide occurred within seven years.

In June the transaction appeared on track for a third quarter close, but Lisata disclosed this morning that the merger has been terminated. The company has filed a suit in the Delaware Court of Chancery alleging breach of the agreement and seeking shareholder damages and a $2 million termination fee.