Magenta's CEO Leaves After Patient Death Halts Trials, Shuttering Concerns Looms

Magenta Therapeutics Inc MGTA has implemented a reduction of the company's workforce by up to 56 positions, or approximately 84%, to be substantially completed by February 17, 2023.
Hence, the company expects to incur estimated severance and related costs of $5.4 million by the end of February 2023.
In January, following a patient death, Magenta Therapeutics paused the Phase 1/2 dose-escalation trial of its acute myeloid leukemia (AML) therapy.
The fatality occurred at the Cohort 3 level of the trial, where participants received MGTA-117 at a 0.08-mg/kg dose. The patient in question developed a grade 5 serious adverse event of respiratory failure and cardiac arrest resulting in death, deemed possibly related to the study drug.
Related: Magenta Therapeutics Shares Crashes As Dose-Limiting Toxicities Observed In Lead Blood Cancer Study.
That layoff includes nearly the entire executive bench: co-founder, CEO & president Jason Gardner, Magenta's technical chief, commercial leader, lead people officer, and clinical development head, per an SEC filing.
CFO and operating chief Stephen Mahoney will take over as president.
Magenta noted that the company had $112 million in cash, cash equivalents, and marketable securities at the end of last year.
Last week, the company halted further development of its programs and started to look for strategic alternatives.
Price Action: MGTA shares are down 1.78% at $0.83 on the last check Thursday.