With public biopharma stock valuations plunging during the past two years, cost-cutting plans to preserve cash on hand have become common until conditions are more favorable for fundraising through the sale of stock through public offerings. When a company finds itself in the position of having to prioritize some research and development programs over others while laying off a portion of its workforce, stock prices sometimes get a little boost as investors respond positively to executives responsibly managing their remaining resources, but often valuations take a hit.
Nkarta, Inc. investors had a remarkably positive reaction to the natural killer (NK) cell therapy developer’s strategic update on 17 October, however, with the company’s stock price more than doubling after it revealed a cost-cutting plan that will make Nkarta’s $278.4m in cash as of 30 September last into 2026 versus prior guidance of 2025
