Tempest Therapeutics Bets on Cell Therapy with Factor Bioscience Acquisition

NEW YORK, NY – November 19, 2025

A Strategic Pivot for Tempest Therapeutics

Tempest Therapeutics (TPST) is dramatically altering its trajectory with the all-stock acquisition of Factor Bioscience’s dual-CAR T cell therapy programs. The move, announced today, represents a significant pivot for the clinical-stage biotechnology company, shifting its focus beyond small molecule oncology towards the burgeoning field of cell therapy. The acquisition includes TPST-2003, a clinical-stage CD19/BCMA dual-CAR T program targeting extramedullary disease (EMD) and POEMS syndrome, and a pipeline of preclinical cell therapies. Concurrent with the acquisition, Tempest announced a leadership change, with Matt Angel, formerly Factor’s CEO, assuming the role of President & CEO, and Stephen Brady transitioning to Chairman.

The deal arrives at a critical juncture for Tempest, which had been facing mounting financial pressure. Prior to the announcement, the company reported dwindling cash reserves and had implemented significant cost-cutting measures, including a substantial workforce reduction. The acquisition, coupled with an investment commitment from Factor, is projected to extend Tempest’s cash runway to mid-2027, providing much-needed financial stability.

“This is a transformative moment for Tempest,” said one industry analyst who requested anonymity. “They were clearly in a precarious position, and this acquisition provides a lifeline, while also opening up new avenues for growth in a promising area of cancer treatment.”

Diving into the Dual-CAR T Technology

The core of the acquisition lies in Factor Bioscience’s dual-CAR T cell therapy platform. Traditional CAR T cell therapies target a single antigen on cancer cells. However, cancer cells can evade these therapies by downregulating the targeted antigen or mutating to become invisible. Dual-CAR T cell therapies overcome this challenge by simultaneously targeting two different antigens, making it more difficult for cancer cells to escape treatment.

TPST-2003, the lead asset in the acquisition, targets both CD19 and BCMA. This combination is particularly relevant for multiple myeloma, a cancer of plasma cells, where BCMA is a key target. However, some myeloma cells lack BCMA expression, or downregulate it during treatment. Targeting CD19, which can be present on myeloma stem cells, offers a potential solution to this resistance mechanism. The program's focus on extramedullary disease (EMD), a particularly aggressive form of multiple myeloma that spreads outside the bone marrow, addresses a significant unmet medical need.

“The dual-targeting approach offers a compelling advantage,” explained a researcher specializing in CAR T cell therapy. “By hitting two targets, you increase the likelihood of a durable response and reduce the risk of antigen escape.”

Beyond TPST-2003, the acquisition also brings a pipeline of preclinical cell therapies, including programs targeting solid tumors. These programs utilize different CAR designs and targeting strategies, providing Tempest with a broader platform for innovation.

Financial Implications and Market Skepticism

The acquisition is structured as an all-stock transaction, with Tempest issuing 8,268,495 shares to Factor’s affiliate, Erigen, representing approximately 65% of the outstanding shares post-transaction. Existing Tempest stockholders will own around 35% of the company on a fully diluted basis. While this structure preserves Tempest’s cash reserves, it also significantly dilutes existing shareholders.

“The dilution is a concern,” noted one investor. “The market is clearly questioning the valuation, and the stock price has taken a hit since the announcement.”

Shares of Tempest Therapeutics plunged following the announcement, indicating market skepticism regarding the deal’s immediate financial implications. Despite the extended cash runway and pipeline expansion, investors appear concerned about the integration of Factor Bioscience and the long-term prospects of the dual-CAR T programs.

Analysts point to the competitive landscape of the CAR T cell therapy market as a key factor. Several approved CAR T cell therapies targeting BCMA are already available, and numerous companies are developing competing programs. Tempest will need to demonstrate a clear clinical advantage for TPST-2003 to gain market share.

Leadership Transition and Future Outlook

The appointment of Matt Angel as President & CEO signals a shift in strategy for Tempest. Angel previously served as CEO of Factor Bioscience and has a deep understanding of cell therapy development. He brings a wealth of experience to the role and is expected to drive the integration of the two companies.

“Angel’s appointment is a positive sign,” said an industry observer. “He’s a seasoned executive with a proven track record in cell therapy, and he’ll be instrumental in guiding Tempest through this transition.”

Looking ahead, Tempest plans to initiate a potentially registrational study of TPST-2003 in relapsed/refractory multiple myeloma in the U.S. in 2027. The company also intends to advance the preclinical pipeline of cell therapies and explore potential partnerships to accelerate development. The acquisition of Factor Bioscience represents a bold gamble for Tempest Therapeutics, but it could also position the company for long-term success in the rapidly evolving field of cancer treatment.