Lisata Therapeutics Inc (NASDAQ:LSTA, FRA:8NE) said on Tuesday it has taken decisive action following the termination of its merger agreement with Kuva Labs and its subsidiary Kuva Acquisition Corp, filing suit to protect stockholder interests and moving swiftly to strengthen its financial position.
The clinical-stage pharmaceutical company, which develops therapies for advanced solid tumors, filed the lawsuit in the Delaware Court of Chancery, alleging Kuva breached the merger agreement dated March 6, 2026.
Lisata is seeking damages for the benefit of its stockholders, as well as a $2 million termination fee it says it is owed under the agreement.
The company's board said it continues to actively evaluate strategic alternatives to enhance stockholder value, including a potential acquisition, merger, reverse merger, other business combination, asset sales, or liquidation and dissolution. Lisata said it will provide updates once its board approves a definitive course of action or another disclosure becomes warranted.
To sharpen its focus and preserve cash for this strategic review, Lisata streamlined its workforce, reducing full-time positions by approximately 72%, including its executive vice president of research and development and chief medical officer role. The company said some affected staff may continue supporting the organization as external consultants.
Lisata's lead product candidate, certepetide, is an investigational cyclic peptide designed to help co-administered or tethered anti-cancer drugs penetrate solid tumors more effectively, using the company's CendR Platform technology.