Lisata Therapeutics announced on Aug. 4 that it has cut approximately 72% of its full-time workforce and filed a lawsuit against Kuva Labs after the planned merger between the two companies was called off. The Basking Ridge, New Jersey–based company had 21 full-time employees as of Dec. 31, 2025, meaning about 15 people are affected by the layoffs.
The company said the staff reductions were necessary to reduce operating expenses and preserve cash as it explores strategic alternatives. Lisata is developing therapies for advanced solid tumors and other serious diseases. Some former employees may be temporarily rehired as external consultants. Among those let go is Kristen Buck, executive vice president of research and development and chief medical officer, according to a filing with the Securities and Exchange Commission.
Lisata's lawsuit alleges that Kuva breached their merger agreement, and the company is seeking damages for its stockholders as well as a $2 million termination fee it says it is owed under the agreement.
Earlier this year, Lisata had announced an agreement to be acquired by Houston-based Kuva Labs, which develops magnetic resonance imaging technology aimed at early detection of solid cancers. In June, Lisata told stockholders they would receive $4 per share plus up to $3 per share in contingent payments if certain milestones were met, with an expected deal closure in the third quarter.
The company estimates incurring about $1.2 million in costs related to severance pay and other termination benefits from these layoffs. Affected employees are being offered separation benefits including severance payments and temporary healthcare coverage assistance for some staff members. Buck will receive an amount equal to twelve months' base salary plus target bonus compensation; Lisata will also pay COBRA premiums for Buck and her dependents for up to twelve months.
In addition to approving the layoffs on Aug. 3, Lisata’s board approved a $200,000 cash retention bonus for James Nisco, senior vice president of finance and treasury and chief accounting officer, provided he remains with the company through Dec. 31.
