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Magenta Therapeutics, which focuses on using stem cell transplantation to treat blood cancers, genetic diseases, and autoimmune diseases, announced on Wednesday, Jan. 25 that the latest patient to be dosed with their MGTA-117 drug, which depletes stem cells to make room in the bone marrow for stem cell transportation, died after experiencing respiratory failure and cardiac arrest.
The clinical trial for the MGTA-117 drug was in a phase that focused on patients with relapsed or refractory acute myeloid leukemia, a type of cancer in the blood and bone marrow, and myelodysplastic syndrome, which is a type of cancer in which immature blood cells in the bone marrow do not mature and become healthy.
The patient's death was deemed to be possibly caused by the MGTA-117 drug. Magenta Therapeutics reported the death to the FDA and suspended dosing patients in the clinical trial with the drug.
Two weeks later, on Thursday, Feb. 2, the clinical-stage biotech company announced that it was halting its programs and beginning to look at "strategic alternatives focused on maximizing shareholder value." These alternatives include an acquisition, merger, or business combination.
The company has not announced any time frame for the potential business change and it has declined to comment further on the situation.
Shares in Magenta Therapeutics (MGTA), jumped over 50% following the announcement that the company would pivot to maximizing value for shareholders.
The biotech company was founded in 2015 and possessed over $128.3 million in cash as of its third-quarter financial results.
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