In addition to laying off employees, including a member of its management team, Lisata Therapeutics is also suing Kuva Labs, alleging the company breached a merger agreement.
With a planned merger with Kuva Labs now off the table, Lisata Therapeutics has slashed about 72% of its full-time workforce and filed a lawsuit against Kuva, the biotech announced Tuesday. The Basking Ridge, New Jersey–based company had 21 full-time staffers as of Dec. 31, 2025, meaning the cuts could affect around 15 people.
The layoffs were necessary to reduce operating expenses and preserve cash to pursue strategic alternatives, according to Lisata, which is developing therapies for the treatment of advanced solid tumors and other serious diseases. Some staff members who were let go may be brought back temporarily as external consultants. Those out of jobs include Kristen Buck, Lisata’s executive vice president of research and development and chief medical officer, according to an SEC filing.
The biotech’s lawsuit against Kuva alleges that Kuva breached the merger agreement, according to the announcement. Lisata is seeking damages for the benefit of its stockholders and a $2 million termination fee it says it’s owed under the agreement.
Lisata announced in March that it had entered into a definitive agreement to be acquired by privately-held Kuva Labs. Houston-based Kuva is developing magnetic resonance imaging technology meant to allow safe, early, noninvasive and unambiguous detection of solid cancers. In June, Lisata announced that stockholders would receive $4 per share and two contingent cash payments of up to an aggregate of $3 per share subject to certain milestones. The biotech had expected the deal to close during the third quarter.
Lisata estimates it will incur about $1.2 million in costs connected with the workforce reduction related to severance pay and other related termination benefits, according to the SEC filing. Affected employees are being offered separation benefits including severance payments along with temporary healthcare coverage assistance for certain staffers. Buck is entitled to an amount equal to 12 months of her base salary and target bonus compensation. Lisata will also pay COBRA premiums for Buck and her covered dependents for up to 12 months.
In addition to approving the layoffs on Aug. 3, the biotech’s board also approved a $200,000 cash retention bonus to James Nisco, senior vice president of finance and treasury and chief accounting officer. Nisco must remain with Lisata through Dec. 31 to receive the bonus.
