Fate Uncertain As Cell Therapy Biotech Pulls Out Of J&J Deal, Restructures

Fate Therapeutics, Inc. has initiated a major cull of its pipeline, discontinuing its lead clinical programs following the termination of its partnership with Janssen Biotech Inc.. and preparing to lay off more than 200 employees as it seeks to extend cash runway over the next three years. Instead, it will shift its focus to a small handful of much earlier allogeneic cell therapy programs.

But while it touted the next-generation programs’ potential for better cell persistence and eliminating the need for chemotherapy, analysts were mostly unimpressed.