Full Press Release Details
SAN DIEGO, Feb. 15, 2023 (GLOBE NEWSWIRE) --
The Class: Robbins LLP reminds investors that a shareholder filed a class action on behalf of all investors who purchased or otherwise acquired shares of Fate Therapeutics, Inc. (NASDAQ: FATE) common stock between April 2, 2020 and January 5, 2023, for violations of the Securities Exchange Act of 1934. Fate is a clinical-stage biopharmaceutical company that develops programmed cellular immunotherapies to treat cancer and immune disorders.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Fate. Shareholders who want to act as lead plaintiff for the class must file their papers by March 22, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: Fate Therapeutics, Inc. (FATE) Misrepresented the Impact of the Janssen Collaboration Agreement on Fate’s Long-Term Clinical and Commercial Profitability
According to the complaint, on April 2, 2020, Fate announced its entry into a global collaboration and option agreement with Janssen Biotech, Inc., one of the Janssen Pharmaceutical Companies of Johnson & Johnson, for cell-based cancer immunotherapies, under which Fate received a $50 million upfront payment ("Janssen Collaboration Agreement"). In addition, Fate was eligible for up to $3 billion in various milestone payments and double-digit royalties on any net sales from the collaboration. On the news, Fate's stock price jumped 8.8% in trading on April 3, 2020.
During the class period, defendants failed to disclose that the Janssen Collaboration Agreement was less sustainable than Fate had represented to investors. In truth, certain of the clinical programs, milestone payments, and royalty payments associated with the Janssen Collaboration Agreement could not be relied upon as future revenue sources, and as a result, Fate had overstated the impact of the Janssen Collaboration Agreement on Fate’s long-term clinical and commercial profitability.
On January 5, 2023, Fate announced it had terminated the Janssen Collaboration Agreement. Specifically, the Company disclosed that it was “not able to align with Janssen on their proposal for continuation of our collaboration, where two product candidates targeting high-value, clinically-validated hematology antigens were set to enter clinical development in 2023[.]” As a result of the termination, Fate revealed that all licenses and other rights granted pursuant to the Janssen Collaboration Agreement would terminate, that it would reduce its headcount to about 220 employees in Q1 2023, and that it would discontinue several of its natural cell killer programs in various cancers. On this news, Fate's stock price fell $6.76 per share, or 61.45%, to close at $4.24 per share on January 6, 2023.
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