Jasper Therapeutics Ousts CEO Ron Martell After 97% Stock Collapse, Promotes COO Amid Turnaround Effort
January 7, 2026 · by Fintool Agent
Jasper Therapeutics+6.30% (NASDAQ: JSPR) has terminated CEO Ron Martell "without cause," ending a tumultuous three-and-a-half-year tenure that saw the clinical-stage biotech's stock plunge 97% from $80 to around $2 per share.
The board has promoted Chief Operating Officer Jeet Mahal to CEO and elevated Chairman Thomas Wiggans to Executive Chair, signaling a pivot toward operational execution as the company prepares for a pivotal Phase 2b study in chronic spontaneous urticaria (CSU).
Shares rose 8% on the news to $2.05, with aftermarket trading pushing the stock to $2.18—a modest bounce in the context of an 87% decline over the past twelve months.
The Numbers Behind the Exit
Martell's departure follows a year of compounding crises:
| Event | Date | Impact |
|---|---|---|
| Clinical trial anomaly reported | July 2025 | 10 U.S. patients showed no response; investigation launched |
| 50% workforce reduction | July 2025 | 20 employees terminated; asthma and SCID programs halted |
| Shareholder class action filed | Sept 2025 | Alleges material misstatements about clinical studies |
| Derivative lawsuit filed | Nov 2025 | Names Martell and other executives as defendants |
| Going concern warning | Nov 2025 | Management concludes substantial doubt about company's ability to continue |
The board's decision to characterize Martell's exit as a termination "without cause"—rather than a resignation—triggers an 18-month severance package worth over $1 million, including base salary payments and COBRA coverage.
Financial Reality Check
Jasper ended Q3 2025 with $50.9 million in cash, burning approximately $55 million over the prior nine months. The company raised $27.5 million in a September 2025 underwritten offering at heavily discounted terms, issuing warrants that effectively doubled the potential share count.
| Metric | Q3 2025 | Full Year 2024 |
|---|---|---|
| Cash & Equivalents | $50.9M | $71.6M |
| Net Loss | ($66.7M) YTD | ($71.3M) |
| Cash Runway | <12 months | — |
| Accumulated Deficit | ($307.6M) | ($240.9M) |
Management has explicitly stated the company has "concluded that substantial doubt exists about its ability to continue as a going concern."
Ask Fintool AI AgentWhy Now? The Investigation Conclusion
The timing of Martell's departure is notable. In December 2025, Jasper concluded its investigation into the anomalous clinical trial results that sparked the July crisis. The company determined that the lack of efficacy in 10 U.S. patients was not due to drug manufacturing issues but rather "patient selection issues"—9 of the 10 patients likely did not have mast cell-driven CSU at all.
This finding clears briquilimab itself but raises questions about clinical trial execution under Martell's leadership. The enrollment failures at U.S. sites—combined with the subsequent 50% workforce reduction, halted programs, and securities litigation—paint a picture of operational dysfunction that the board appears to be addressing with fresh leadership.
Who Is Jeet Mahal?
The new CEO brings a distinctly different profile than his predecessor. While Martell was a classic biotech CEO who had led six companies over his career (with mixed results), Mahal has spent over six years at Jasper in operational roles and has deep experience navigating the specific challenges of late-stage drug development.
Key experience:
- Jasper Therapeutics (2019-present): CFO, COO, Chief Business Officer—essentially built the company's operational infrastructure
- Portola Pharmaceuticals (2008-2019): VP Strategic Marketing, VP Business Development; led partnerships for Andexxa and Bevyxxa
- Johnson & Johnson (2006-2008): Director of Business Development on the Xarelto team
- Education: Four degrees including an MBA from Duke
Mahal's salary increases to $600,000 with a 50% bonus target—more modest than typical biotech CEO packages, reflecting the company's constrained resources.
The Wiggans Factor
The elevation of Tom Wiggans to Executive Chair signals the board is taking a more hands-on role. Wiggans' track record includes:
- Founded Dermira and sold it to Eli Lilly for $1.1 billion in 2020
- CEO of Connetics USA until its acquisition by Stiefel (later GSK)
- Multiple successful exits: Peplin to LEO Pharma, Cymabay to Gilead, Excaliard to Pfizer, Forma to Novo Nordisk
Wiggans has built and sold more biotech companies than most CEOs will ever run. His presence as Executive Chair suggests the board may be positioning Jasper for strategic alternatives if briquilimab continues to show promise.
Ask Fintool AI AgentWhat This Means for Investors
Near-term catalysts:
- January 8, 2026: Investor webinar with updated BEACON study data in CSU and open-label extension results
- Mid-2026: Phase 2b study initiation in CSU
The bull case: Briquilimab's mechanism (depleting mast cells via anti-c-Kit antibodies) represents a genuinely differentiated approach to CSU, a large market where Dupixent and Xolair dominate. If the Phase 2b succeeds, Jasper could become an acquisition target—Wiggans' presence makes this scenario more plausible.
The bear case: At current burn rates, Jasper has roughly nine months of cash remaining without additional financing. Any dilutive raise at these levels would be painful for existing shareholders. The securities litigation creates additional overhang, and the company's track record of clinical trial execution remains questionable despite blaming "patient selection."
The market's verdict: At a $33 million market cap, Jasper is priced for failure. The stock trades below the value of its net cash, meaning investors are assigning essentially zero value to briquilimab and the Phase 2b opportunity. That's either an opportunity or the market telling you something.
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