Enlivex cuts costs and staff to prioritize Phase 2b Allocetra knee OA trial

Enlivex Therapeutics Ltd. announced on October 19, 2026 a cost reduction plan, effective immediately, meant to substantially cut cash burn and concentrate resources on running its Phase 2b trial of Allocetra for patients with moderate-to-severe age-related symptomatic primary knee osteoarthritis.¹ The company said it expects to report topline six-month data from the trial by mid-2027.¹

The plan has several components. Enlivex is halting all research and development work not tied to the Phase 2b trial, effective immediately.¹ The company's remaining resources will go toward executing that trial and related activities.¹ Staffing will be cut by roughly 60%.¹ Management salaries will drop by 20%, and CEO Oren Hershkovitz's salary will be cut by 40%.¹

Hershkovitz said positive results from the Phase 1/2a trial of Allocetra and the FDA's Regenerative Medicine Advanced Therapy designation give the company strong conviction in Allocetra's potential for treating knee osteoarthritis.¹ He called the six-month Phase 2b readout the company's most important near-term milestone.

Describing the trial design, Enlivex said the global, multicenter, randomized, double-blind, placebo-controlled study is testing intra-articular Allocetra injections in patients aged 64 and older with the same moderate-to-severe primary knee OA population for which the FDA granted RMAT designation in July 2026.¹ The trial follows the completed Phase 1/2a study, registered as "NCT06233474," in which, among the age-related Primary OA responder population, Allocetra showed statistically significant and what the company described as clinically meaningful improvements in knee pain and function versus placebo at three and six months, alongside a favorable safety profile.¹

Enlivex separately described itself as a "quality longevity" company that also runs a prediction markets treasury strategy built around the Rain protocol on Arbitrum.¹