Concentra snaps up troubled Cargo Therapeutics in latest biotech acquisition

Concentra Biosciences is acquiring Cargo Therapeutics for about $202 million upfront, continuing its spree of buying distressed biotechs. Cargo’s shareholders will also get a share of funds above $217.5M and 80% of future asset sale proceeds.

Why it matters: The deal ends Cargo's turbulent run after its lead CAR-T therapy caused serious side effects and deaths, forcing the company to halt development, cut staff, and abandon its pipeline.

Backstory: Cargo launched in 2022 with $200M and went public with a $281M IPO in 2023. In January 2025, it halted development of its lead candidate due to safety issues and laid off 50% of its staff. A second layoff and CEO exit followed, cutting 90% of the remaining staff.

Big picture: Concentra, backed by Tang Capital Partners, is capitalizing on struggling biotechs by acquiring them at modest premiums and returning leftover cash to shareholders. Cargo joins other recent acquisitions like Elevation Oncology, Kronos Bio, Allakos, and just last week, IGM Biosciences.

Superhero: Cargo had been facing mounting investor pressure to return capital instead of pivoting. The company’s board welcomed Concentra’s offer and approved the deal unanimously after a strategic review.

Yes, but: Not all targets welcome Concentra’s last-resort offers. Acelyrin, for example, has used defenses to block its bids and chose to merge with fellow biotech company Alumis instead.