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.
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Source: https://finance.yahoo.com/news/fate-therapeutics-ends-collaboration-deal-152718765.html