Caribou Biosciences is exploring strategic alternatives and cutting jobs after it decided to discontinue the development of two of its cancer products.

The biopharmaceutical company said Tuesday it would cease development of vispa-cel, which was designed to treat lymphoma, and CB-011, which was meant to treat myeloma.

Shares dropped 36% to 73 cents in after-hours trading. Through the close, the stock had lost 29% of its value over the past year.

Despite promising results in trials of the products, the current financing environment for the therapies has made it increasingly difficult to get enough funding to advance the programs, Chief Executive Rachel Haurwitz said.

Caribou's board approved the process of initiating a strategic alternatives review, which could include consideration of a merger or sale. Caribou hasn't set a timeline for the completion of the review.

Caribou said it plans to discontinue further clinical development activities and implement a substantial reduction in workforce, which is expected to be mostly complete in the fourth quarter of 2026.

Caribou expects to incur $15 million to $19 million in expenses related to restructuring, much of which will be recognized in the fourth quarter. The expenses are mostly related to severance payments and trial wind-down costs.

The company also plans to terminate contracts, resolve intellectual property licensing arrangements and sublease its facilities.

Chief Financial Officer Sriram Ryali also agreed to step down when Caribou executes a binding definitive agreement for a strategic alternative.