Sana Biotechnology, Inc.

Case Overview
46 Days Left to Seek Lead Plaintiff
Lead Plaintiff Deadline: | Lead Plaintiff Deadline: 05/20/2025 |
Status: | Status: Investigating |
Company Name: | Company Name: Sana Biotechnology, Inc. |
Court: | Court: Western District of Washington |
Case Number: | Case Number: 2:25cv00512 |
Class Period: | Class Period: 03/17/2023 - 11/04/2024 |
Ticker: | Ticker: SANA |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Western District of Washington on behalf of those who acquired Sana Biotechnology, Inc. (“Sana” or the “Company”) (NASDAQ:SANA) securities during the period from March 17, 2023, through November 4, 2024 (“the Class Period”). Investors have until May 20, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On October 10, 2023, during after-market hours, Sana issued a press release announcing that it “will reduce near-term spend on its fusogen platform for in vivo gene delivery” and instead “[i]ncreas[e its] focus on [its] ex vivo cell therapy platform[,]” thereby “postpon[ing] the planned SG299 IND” while “decreas[ing] its expected forward operating burn.” Sana further disclosed a “29% headcount reduction” that, in tandem with the “decreased expenses related to the fusogen platform[,]” would keep its “2024 operating cash burn . . . below $200 million[,]” thereby “allowing [its] current cash position to extend further into 2025.” The same press release also quoted Defendant Steven D. Harr (“Harr”), Sana’s President and Chief Executive Officer (“CEO”), as stating that “[w]e need to ensure that we have a financeable cost structure with..emerging opportunities factored in,” and that “this strategic re-positioning enables us to deliver significant clinical data across multiple drug candidates with the current balance sheet.” On this news, the price of Sana declined by $0.34 per share, from $3.80 per share on October 10, 2023, to close at $3.46 on October 11, 2023.
Then, on November 4, 2024, during after-market hours, Sana issued a press release announcing that it “will suspend development of both SC291 in oncology and of SC379…as it seeks partnerships for these programs” and instead “increase its investment in its type 1 diabetes program with the cash savings from these changes[,]” thereby “extend[ing] its expected cash runway into 2026.” On this news, the price of Sana declined by $0.37 per share, from $3.76 per share on November 4, 2024, to close at $3.39 on November 5, 2024.
The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (1) Sana was at significant risk of having insufficient funds to maintain its current operations and advance one or more of its product candidates; (2) SC291 in oncology, SC379, and SG299 were less promising than Defendants had led investors to believe; (3) in order to preserve cash and advance its more promising product candidates, Sana was likely to decrease funding for and/or discontinue SC291 in oncology, SC379, and SG299, as well as significantly reduce its headcount; and (4) accordingly, Defendants overstated Sana's financial capacity to maintain its current operations and advance its existing product candidates.
On October 10, 2023, during after-market hours, Sana issued a press release announcing that it “will reduce near-term spend on its fusogen platform for in vivo gene delivery” and instead “[i]ncreas[e its] focus on [its] ex vivo cell therapy platform[,]” thereby “postpon[ing] the planned SG299 IND” while “decreas[ing] its expected forward operating burn.” Sana further disclosed a “29% headcount reduction” that, in tandem with the “decreased expenses related to the fusogen platform[,]” would keep its “2024 operating cash burn . . . below $200 million[,]” thereby “allowing [its] current cash position to extend further into 2025.” The same press release also quoted Defendant Steven D. Harr (“Harr”), Sana’s President and Chief Executive Officer (“CEO”), as stating that “[w]e need to ensure that we have a financeable cost structure with..emerging opportunities factored in,” and that “this strategic re-positioning enables us to deliver significant clinical data across multiple drug candidates with the current balance sheet.” On this news, the price of Sana declined by $0.34 per share, from $3.80 per share on October 10, 2023, to close at $3.46 on October 11, 2023.
Then, on November 4, 2024, during after-market hours, Sana issued a press release announcing that it “will suspend development of both SC291 in oncology and of SC379…as it seeks partnerships for these programs” and instead “increase its investment in its type 1 diabetes program with the cash savings from these changes[,]” thereby “extend[ing] its expected cash runway into 2026.” On this news, the price of Sana declined by $0.37 per share, from $3.76 per share on November 4, 2024, to close at $3.39 on November 5, 2024.
The complaint alleges that defendants, throughout the Class Period, failed to disclose that: (1) Sana was at significant risk of having insufficient funds to maintain its current operations and advance one or more of its product candidates; (2) SC291 in oncology, SC379, and SG299 were less promising than Defendants had led investors to believe; (3) in order to preserve cash and advance its more promising product candidates, Sana was likely to decrease funding for and/or discontinue SC291 in oncology, SC379, and SG299, as well as significantly reduce its headcount; and (4) accordingly, Defendants overstated Sana's financial capacity to maintain its current operations and advance its existing product candidates.