Fate Therapeutics slumps on terminating deal with J&J unit

Fate Therapeutics

05/01/2023 23:32

** Shares of biotech co Fate Therapeutics  FATE.O  fall ~50%
to $5.82 after the bell
    ** Co says it is terminating its cancer treatment
collaboration with Johnson & Johnson's Janssen unit  JNJ.N  and
discontinuing development of all collaboration products
    ** FATE adds that it is stopping further development of its
experimental therapies FT516 and FT538 in all programs 
    ** Co was testing FT516 and FT538 as potential treatments
for cancers such as acute myeloid leukemia, B-cell lymphoma, and
solid tumors
    ** FATE says it will reduce its headcount to about 220
employees in Q1 2023
    ** Co ends Q4 2022 with $475 mln in cash and expects to have
sufficient resources to fund operations through 2025 
    ** FATE fell ~83% in 2022 
 (Reporting by Bhanvi Satija in Bengaluru)
 ((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))