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id: 548, Created by Stan Vick, Scout
FATE Free Fall on Rejected Janssen Offer Case
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On January 5, 2022, Fate Therapeutics, Inc. (NASDAQ: FATE) announced that it declined a proposal from Janssen for the continuation of the collaboration and option agreement between the two on revised terms and conditions. Consequently, the agreement was terminated and all collaboration activities will be wound down in Q1 2023.
On this news, Fate’s stock price fell over 61.5%, and the Company more than $ 650 MM of its market cap, seriously damaging investors.
- In Q4 2022, the FDA approved an IND application for the first collaboration product for the treatment of B-cell lymphoma. FATE expects to receive a $3 million milestone payment for the same product. With the termination of the collaboration, the Company will wind down its activities with Janssen, including discontinuing the development of all collaboration products at the expense of Janssen.
- In September 2022, Janssen exercised its commercial option for a second multiplexed-engineered, iPSC-derived CAR NK cell product candidate, which targets an undisclosed antigen expressed in certain blood cancers.
- In May 2022, Janssen exercised its commercial option on FT555, a multiplexed-engineered, iPSC-derived CAR NK cell product candidate targeting GPRC5D, a tumor-associated orphan G-protein-coupled receptor found to be highly expressed on myeloma cells.
FATE shares have declined over 90% in the past year compared with the industry’s fall of 16.4%.
Taking FATE stock dynamics and decisions made by Company's management, Investors have ground to suspect that the Company and its Leaders did not act in the best interests of shareholders, which led to a significant depreciation of their holdings.
Failure to Disclose,
Breach of Fiduciary duty,
Shock Event Date
05 January 2023