Caribou Biosciences discontinues CAR-T therapies, cuts staff

Caribou Biosciences is discontinuing research on two off-the-shelf CAR-T cancer therapies and implementing layoffs. The decision, announced on Tuesday, October 6, 2026, stems from the company's inability to raise the money needed to continue development. One of the halted therapies, vispa-cel, was ready for Phase 3 testing in lymphoma.

Workforce reductions and strategic review underway

Caribou Biosciences is laying off staff as part of this restructuring. The substantial reduction in workforce will be mostly completed by the end of the year. Concurrently, the company's board will consider mergers, acquisitions, or other transactions related to the company as a whole or for its assets. This strategic review marks a significant shift for the CRISPR-focused biotech.

Funding challenges and investor skepticism halt Phase 3 trial

The company cited the inability to raise money as the direct reason for halting development. The current financing environment for allogeneic CAR-T cell therapies is challenging. Investors were unwilling to fund the pivotal Phase 3 trial for vispa-cel. Analysts noted lingering questions about the therapy's clinical risk, matching strategy, and data strength. The U.S. Food and Drug Administration had previously agreed to a proposed trial design for vispa-cel, but investor confidence was insufficient to proceed.

Scientific legacy and recent strategic shifts

Caribou Biosciences was co-founded in 2011 by Jennifer Doudna, a Nobel Prize winner for her work on CRISPR gene-editing. The company debuted on the stock market ten years later in 2021, launching one of the biggest initial public offerings in the CRISPR field. Its shares briefly topped $30 per share in September 2021 but were trading under $1 at the time of the October 2026 announcement.

The company has undergone several strategic pivots. After exiting autoimmune disease research in 2025, Caribou shifted its focus to oncology. Recent years saw multiple program discontinuations and workforce reductions. In June 2024, Caribou delivered disappointing study results for vispa-cel, then known as CB-010. The following month, it announced a 12% workforce reduction and stopped work on a different allogeneic approach. Another staff reduction occurred in 2025.

Caribou CEO Rachel Haurwitz stated that vispa-cel and another experimental medicine, CB-011 for multiple myeloma, held potential to benefit patients. The company had worked to match human leukocyte antigens on donor cells to patients in its trials. Despite this scientific groundwork, financial headwinds proved insurmountable. Caribou's board will now consider mergers, acquisitions, or other transactions related to the company as a whole or for its assets.