BMO Capital Markets revised its outlook on clinical-stage biopharmaceutical company Fate Therapeutics’ stock (NASDAQ: ) on Friday. The firm lowered its price target on the stock to $6.00 from the previous price of $7.00, while maintaining a Market Perform rating on the stock.
This price target change follows Fate Therapeutics’ recent update on its clinical trials. The company announced the start of a Phase 1 trial of FT819, its CD19 CAR-T therapy, in patients with systemic lupus erythematosus (SLE) and has begun recruiting for the conditioning-free arm of a Phase 1 trial of FT522, targeting B-cell lymphoma.
Despite these advances, Fate Therapeutics has decided not to further advance FT819 in hematological malignancies. Additionally, the company is discontinuing its BCMA NK cell-focused FT576 program, despite both programs having demonstrated clinical efficacy.
BMO Capital’s stance on Fate Therapeutics acknowledges the potential of the company’s platform. Still, there is uncertainty about which specific plans will significantly increase the company’s value. The company’s maintained market perform rating reflects cautious optimism amid Fate Therapeutics’ change in strategy.
The biopharmaceutical company’s strategic decision and BMO Capital’s revised price target comes as the industry closely monitors the progress and feasibility of various clinical programs in the highly competitive cell therapy field.
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