On Friday, BMO Capital Markets adjusted its outlook on Fate Therapeutics shares (NASDAQ:FATE), a clinical-stage biopharmaceutical company. The firm lowered its price target on the company's stock to $6.00 from the previous $7.00 while keeping a Market Perform rating on the shares.
The price target adjustment follows recent updates from Fate Therapeutics regarding its clinical trials. The company announced the commencement of a Phase 1 trial for FT819, its CD19 CAR-T therapy, in patients with systemic lupus erythematosus (SLE), as well as the start of enrollment for a conditioning-free arm of the Phase 1 trial for FT522, which targets B-cell lymphomas.
Despite these developments, Fate Therapeutics has decided not to pursue further advancement of FT819 in hematological malignancies. Moreover, the company is discontinuing the FT576 program, which is focused on BCMA NK cells, even though both programs have demonstrated clinical efficacy.
BMO Capital's stance on Fate Therapeutics acknowledges the potential of the company's platform. Still, there is uncertainty regarding which specific programs will significantly contribute to the company's value growth. The firm's maintained Market Perform rating reflects this cautious optimism amidst the strategic changes at Fate Therapeutics.
The biopharmaceutical company's strategic decisions and the revised price target from BMO Capital come at a time when the industry is closely monitoring the progress and viability of various clinical programs in the competitive field of cell therapy.
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