Carisma Therapeutics And OrthoCellix Announce Definitive Merger Agreement To Form New Company Focused On Regenerative Cell Therapies For Orthopedic Diseases

Carisma Therapeutics Inc. and OrthoCellix, Inc., a subsidiary of Ocugen, Inc., have announced that they have entered into a definitive merger agreement to combine both companies in an all-stock transaction. The merger brings together Carisma’s clinical-stage expertise and OrthoCellix’s regenerative cell therapy platform, with the goal of advancing treatments for orthopedic diseases. Following the merger, the combined company will prioritize the development of OrthoCellix’s lead program, NeoCart®, a regenerative cartilage implant designed to repair knee articular cartilage defects. NeoCart® is engineered using the patient’s own cells and a specialized scaffold, aiming to improve the structural and functional recovery of damaged cartilage tissue.

Dr. Shankar Musunuri, Chairman, Chief Executive Officer, and Co-founder of Ocugen, said in a statement, “We believe merging OrthoCellix with Carisma will allow us to create a publicly-traded company focused on the development of NeoCart® and provide value for both Ocugen and Carisma stockholders while unlocking true market potential of NeoCart®. We believe NeoCart® has tremendous potential to deliver a truly transformative approach to cartilage repair, and we’ve established OrthoCellix with dedicated resources to bring this revolutionary technology to the patients who desperately need it.”

Steven Kelly, President and Chief Executive Officer, of Carisma, stated, “Carisma evaluated a range of strategic alternatives, and we believe this proposed transaction represents an opportunity to deliver significant value to our stockholders. OrthoCellix is strongly positioned with its NeoCart® platform, a dedication to developing regenerative cell therapies, and a well-credentialed management team to lead the combined company.”

The combined entity plans to move forward with a Phase 3 clinical trial of NeoCart® in the U.S., a study that has already received support from the U.S. Food and Drug Administration (FDA). The trial will focus on evaluating the therapy’s safety and effectiveness in treating patients with cartilage injuries in the knee, an area with limited long-term treatment options. Through this strategic merger, the companies aim to accelerate the development of NeoCart® and bring forward a novel treatment option for patients living with joint cartilage damage.