Nkarta (NKTX) to cut 34% staff

On March 26, 2025, Nkarta (NASDAQ: NKTX) initiated a reduction in force (the “Reduction”) that is expected to result in a reduction of approximately 34% of the Company’s workforce, or 53 positions. The Company has previously announced the deprioritization of further development of NKX101, as well as NKX019 for non-Hodgkin lymphoma, in order to direct primary resources to the development of NKX019 for the treatment of autoimmune diseases. The Company undertook the Reduction to decrease its costs and create a more streamlined organization to enable achievement of clinical milestones for NKX019, including clinical data updates expected during the second half of 2025, as described further below, and to preserve the Company’s cash reserves following the realization of these milestones. The cost reductions realized from the Reduction are expected to extend the Company’s cash runway into 2029.

In connection with the implementation of the Reduction, the Company currently estimates it will incur approximately $5.5 million to $6.5 million in expenses, consisting primarily of cash severance costs, benefits, payroll taxes and other termination costs for impacted employees, which the Company expects to primarily recognize in the first quarter of 2025. The Company expects to substantially complete the Reduction by the end of 2025.

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