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Fate Therapeutics Ends Collaboration Deal With Janssen, Cuts Staff

Benzinga · 01/06/2023 10:27
  • Fate Therapeutics Inc (NASDAQ:FATE) has decided to terminate the collaboration and option agreement with Janssen Biotech Inc, a Johnson & Johnson unit (NYSE:JNJ), on revised terms and conditions.
  • The agreement has been terminated, and all collaboration activities will be wound down in the first quarter of 2023. 
  • "We are disappointed that we were not able to align with Janssen on their proposal for continuation of our collaboration," Fate CEO Scott Wolchko said.
  •  The company is reducing its headcount to approximately 220 employees. It will discontinue some of its natural killer cell programs in acute myeloid leukemia, B-cell lymphoma, and solid tumors.
  • Fate Therapeutics ended the fourth quarter with approximately $475 million in cash, cash equivalents, and receivables. Based on its pipeline prioritization and expense reduction, the company expects a cash runway by 2025.
  • The pact was initially signed in 2020, and Fate Therapeutics received $100 million in cash and stock and almost $3 billion in milestone payments.
  • Price Action: FATE shares are down 62.80% at $4.10 on the last check Friday.