Lisata Therapeutics falls after merger collapse prompts deep job cuts

Lisata Therapeutics

04/08/2026 12:34

** Shares of biotech Lisata Therapeutics LSTA.O fall 1.9% to $1.02 premarket
** LSTA says it has sued Kuva Labs and its unit Kuva Acquisition Corp after their planned merger was terminated, and has cut about 72% of its full-time staff to reduce costs
** The cancer drug developer is seeking damages for shareholders as well as a $2 million termination payment that it says Kuva owes under the merger agreement
** The job cuts include the termination of its executive vice president of R&D and Chief Medical Officer position
** Says its board is considering options including a sale, merger, sale of company assets or winding down the business; gives no timeline for a decision
** As of last close, LSTA down 44% YTD 

(Reporting by Padmanabhan Ananthan)
((Padmanabhan.Ananthan@thomsonreuters.com))