Cartesian Extends Cash Runway Into 2028 After K2HV Loan
Cash, cash equivalents and restricted cash stood at $149.3 million after a $50 million K2 HealthVentures term loan and $19.3 million of year-to-date ATM proceeds.
Cartesian Therapeutics (RNAC), a late clinical-stage biotechnology company developing cell therapy for autoimmune diseases, said cash, cash equivalents and restricted cash of $149.3 million as of June 30, 2026, are expected to support planned operations into 2028, a later horizon than the mid-2027 outlook it had given after the first quarter.
The late clinical-stage biotechnology company said the balance included the first $50 million term loan under a credit facility with K2 HealthVentures, funded in May 2026, and $19.3 million raised year to date after commissions and expenses through its at-the-market offering program. Long-term debt, net, appeared at $52.9 million as of June 30, versus none at year-end 2025. A second $25 million tranche is expected to be drawable between January 1, 2027, and December 1, 2027, subject to clinical and financing milestones, and a third $25 million tranche between January 1, 2028, and June 1, 2028, subject to approval and sales milestones. An additional $50 million tranche is available at the company’s option, subject to K2HV’s discretion.
President and Chief Executive Officer Carsten Brunn said the quarter was marked by a strategic partnership to explore an in vivo platform and non-dilutive financing, and that the company is preparing for four expected clinical readouts over the next twelve months, including Phase 3 AURORA data in the first quarter of 2027.
Cartesian announced a strategic licensing agreement with WestGene BioPharma to run a Phase 1 dose-escalation trial of the mRNA used in Descartes-08 delivered via WestGene’s targeted lipid nanoparticles in patients with myasthenia gravis. The trial is expected to initiate in the second half of 2026, with human data expected in the first half of 2027. WestGene received an upfront payment and is eligible for development and commercial milestones. Cartesian is also planning to advance multiple internally developed next-generation anti-BCMA CAR constructs and a BCMA-directed T-cell engager as part of an expanding mRNA payload portfolio.
The Phase 3 AURORA trial of Descartes-08 in acetylcholine receptor autoantibody-positive myasthenia gravis continues to advance, with data expected in 1Q27 and a biologics license application planned for mid-2027. The randomized, double-blind, placebo-controlled study is designed to assess autologous anti-BCMA CAR-T versus placebo in approximately 100 patients, given as six once-weekly outpatient infusions without preconditioning chemotherapy. The primary endpoint is the proportion of Descartes-08 participants with an improvement in MG Activities of Daily Living score of three points or more at Month 4.
The Phase 2 TRITON trial in myositis remains on track, with data from a subset of patients expected in the first half of 2027 to inform the path to a pivotal trial. Enrollment remains ongoing in the Phase 1/2 HELIOS pediatric trial of Descartes-08 in juvenile dermatomyositis, with data also expected in the first half of 2027. Descartes-08 has Orphan Drug and Regenerative Medicine Advanced Therapy designations for MG and Rare Pediatric Disease Designation for JDM.
Research and development expenses were $20.4 million for the three months ended June 30, 2026, compared with $14.9 million a year earlier. The increase was primarily associated with the ongoing Phase 3 AURORA trial, partially offset by lower stock-based compensation and a decrease in expenses for early-stage programs. General and administrative expenses were $8.7 million, primarily due to higher professional and consulting fees.
Net income was $15.8 million, or $0.47 a share basic, for the three months ended June 30, 2026, versus $15.9 million, or $0.51 a share, a year earlier. The quarter included a $49.2 million gain on the change in fair value of contingent value rights, a $4.5 million loss on the change in fair value of an embedded derivative, $1.1 million of interest income and $0.9 million of interest expense. Collaboration and license and grant revenues were zero.
Current cash resources are expected to support planned operations, including completion of the ongoing Phase 3 AURORA trial, into 2028, including through four expected clinical data readouts and accelerated investment in precommercial activities.