Fate Therapeutics Ends Collaboration Deal With Janssen, Cuts Staff

• 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.

See more from Benzinga

• Graphite Bio Shares Tank After Pausing Sickle Cell Therapy Study

• Rani Therapeutics Receives FDA Feedback For Its Osteoporosis Candidate

Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.