Capricor Draws Investor Attention As Shareholder Kaos Capital Pushes For Board Shakeup Ahead Of Key FDA Decision On DMD Therapy

In a letter to Capricor’s shareholders, Kaos said it intends to nominate two independent directors and to have the company establish a board-led M&A and Strategic Alternatives Committee.

• This comes ahead of Deramiocel’s U.S. Food and Drug Administration action date on August 22.
• Kaos requested a meeting with the board and major shareholders within 15 business days.
• It called for adopting a ‘Cash Preservation Plan’ to freeze nonessential spending.

Capricor Therapeutics Inc. (CAPR) was on investors’ radar with shareholder Kaos Capital calling for immediate changes to the board ahead of a closely watched regulatory decision on its Duchenne Muscular Dystrophy (DMD) therapy.

At the time of writing, CAPR shares were down 2%

Kaos Capital Pushes For Board Overhaul

In a letter to Capricor’s shareholders, Kaos said it intends to nominate two independent directors and to have Capricor establish a board-led M&A and Strategic Alternatives Committee chaired by a shareholder-backed director.

The goal is “not to substitute shareholder opinion for Board judgment” but to ensure the board consults shareholders before making major decisions about Capricor’s cash, pipeline, leadership or strategy, the letter read.

Kaos Calls For Cash Preservation

Kaos argued that Capricor is too dependent on a single regulatory outcome and must protect its cash while exploring acquisitions, licensing deals and partnerships that could broaden its pipeline.

Capricor ended June with $237.9 million in cash, cash equivalents and marketable securities, down about $80.2 million from the end of 2025.

Kaos requested a meeting with the board and major shareholders within 15 business days. It also called for adopting a ‘Cash Preservation Plan’ to freeze nonessential spending, review General and Administrative expenses, and quarterly reporting on cost reductions, cash runway, and capital use.

Kaos also urged the board to hire independent legal advisers and review oversight to address the “numerous legal matters and shareholder demands.”

If the board does not engage, Kaos said it may seek shareholder support to replace directors and potentially senior management.

At the time of writing, Capricor had not responded to Stocktwits’ request for comments on Kaos’ letter.

Deramiocel Deadline In Focus

This comes ahead of Deramiocel’s U.S. Food and Drug Administration (FDA) action date on August 22. The experimental cell therapy is being reviewed for DMD after an advisory panel voted 9–3 against the drug’s use for DMD-related cardiomyopathy.

Capricor recently said the FDA was willing to review an amendment containing 24-month Hope-3 data focused on upper-limb function. A new target date has not been formally announced. Roth Capital expects the FDA review could be extended by about three months.

Retail’s Take On Potential FDA Decision

Meanwhile, retail sentiment surrounding CAPR on Stocktwits turned ‘neutral’ from ‘bullish’ a day earlier.

One user said the FDA’s target action date could be postponed to November.

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Another user speculated why the FDA won't reject Capricor’s application.

View this Stocktwits post

The stock has crashed 75% so far this year.

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