Carisma Therapeutics (CARM) Shares Plunge 43.81% After Nasdaq Delisting Shift to OTC Trading

Carisma Therapeutics (CARM) shares plunged 43.81% on October 10, 2025, hitting an intraday low of 44.44% and reaching the lowest level since May 2025. The steep decline follows the company’s definitive delisting from Nasdaq and its transition to over-the-counter (OTC) trading, marking a terminal phase in its operational and financial trajectory.

The delisting, effective October 13, 2025, reflects Carisma’s failure to meet Nasdaq’s listing requirements, including minimum share price and market capitalization thresholds. Shares will trade under the same ticker symbol, “CARM,” but with significantly reduced liquidity and transparency. The company has announced an “orderly wind-down” of operations, prioritizing asset monetization while abandoning its core mission of developing engineered cellular therapies, including its CAR Macrophage platform.

Investor recovery appears unlikely, as Carisma explicitly stated that “it is improbable there will be a meaningful amount of cash available for distribution to stockholders.” This underscores years of underperformance, including stalled clinical trials, delayed pipeline progress, and unsustainable operational costs. The absence of partnerships, licensing deals, or external funding further compounds the company’s inability to advance its technology or secure a viable exit strategy.

Regulatory transparency has also been compromised, with the company planning to suspend SEC reporting obligations via Form 15. This move removes public access to financial disclosures and clinical updates, heightening uncertainty for stakeholders. The lack of oversight, combined with OTC trading’s inherent risks, leaves shareholders with minimal visibility into asset liquidation efforts or potential red flags.

Historically, Carisma’s challenges include significant workforce reductions—from 46 employees in early 2025 to just six—and a failed merger with OrthoCellix in June 2025. These setbacks, coupled with analyst downgrades and a lack of strategic progress, have eroded confidence. The company’s inability to attract capital or partnerships highlights a fundamental loss of trust in its technology and leadership.

The delisting serves as a cautionary tale for the biotechnology sector, emphasizing the risks of speculative investments without clear commercialization pathways. Carisma’s collapse underscores the necessity of financial resilience and adaptive strategies in early-stage biotech ventures. For current shareholders, the stock now represents a high-risk, illiquid asset with negligible intrinsic value, warranting caution and disengagement from further investment.