Last week, Magenta Therapeutics announced plans to close down. This week, executive leadership and staff are being handed their pink slips.
The stem cell transplant biotech is cutting 56 positions, or 84% of staff, in an effort to preserve financial resources, according to a regulatory filing. Magenta’s board approved the plan on Monday, and the reduction is expected to be substantially completed by Feb. 17. Severance will cost about $5.4 million by the end of the month. Magenta had about $112 million as of the end of December 2022.
A long list of C-suite executives are headed out the door, too. That includes CEO Jason Gardner, Chief Technical Officer David Nichols, Chief Commercial Officer Caren Deardorf, Chief People Officer Kristen Stants and Senior Vice President and Head of Clinical Development Shawn Rose. Gardner, Nichols and Deardorf will stay somewhat involved in as-needed consulting roles. Gardner will no longer serve on the board, which the filing noted was “not due to any disagreement with the company’s operations, policies or practices.”
Meanwhile, Chief Financial Officer Stephen Mahoney will step up as president to oversee the close of business.
A week ago, Magenta announced plans to shut down in the wake of a patient death in a phase 1/2 trial for its anti-CD117 antibody-drug conjugate MGTA-117 in relapsed or refractory acute myeloid leukemia and myelodysplastic syndrome. Magenta initially paused the study on a voluntary basis but later decided to close up shop.