Full Press Release Details
Fate Therapeutics Reports Second Quarter 2018 Financial Results and Highlights Operational Progress
Treated 20th Subject in Phase 2 PROTECT Study of ProTmune
Opened Second Site for Enrollment of FATE-NK100 DIMENSION Study
Submitted First-of-Kind IND to FDA for Universal Off-the-Shelf NK Cell Product FT500
Licensed Novel CAR Constructs from Memorial Sloan Kettering Cancer Center for Off-the-Shelf CAR T-cell Immunotherapies
San Diego, CA - August 6, 2018 - Fate Therapeutics, Inc. (NASDAQ: FATE), a clinical-stage biopharmaceutical company dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders, today reported business highlights and financial results for the second quarter ended June 30, 2018.
"Our submission to the FDA of an IND application for FT500, a universal, off-the-shelf NK cell cancer immunotherapy derived from a master iPSC line, is a significant milestone for the Company and the field of cell therapy," said Scott Wolchko, President and Chief Executive Officer of Fate Therapeutics. "We are excited to be working with the FDA to allow the first U.S. clinical investigation of an iPSC-derived cell therapy and usher in a new era enabling the development, manufacture and delivery of off-the-shelf cell products for the treatment of cancer. I am very pleased with our execution over the first six months of 2018 across the business, as we have also accelerated enrollment in our Phase 2 PROTECT study of ProTmune and expanded our clinical investigation of NK100 to a second leading cancer research center."
Universal Off-the-Shelf Cancer Immunotherapy Preclinical Pipeline
Second Quarter 2018 Financial Results
Today's Conference Call and Webcast
The Company will conduct a conference call today, Monday, August 6th, 2018 at 5:00 p.m. ET to review financial and operating results for the quarter ended June 30, 2018. In order to participate in the conference call, please dial 877-303-6235 (domestic) or 631-291-4837 (international) and refer to conference ID 2383816. The live webcast can be accessed under "Events & Presentations" in the Investors & Media section of the Company's website at www.fatetherapeutics.com. The archived webcast will be available on the Company's website beginning approximately two hours after the event.
FATE-NK100 is an investigational, first-in-class, allogeneic donor-derived natural killer (NK) cell cancer immunotherapy comprised of adaptive memory NK cells, a highly specialized and functionally distinct subset of activated NK cells expressing the maturation marker CD57. Higher frequencies of CD57+ NK cells in the peripheral blood or tumor microenvironment in cancer patients have been linked to better clinical outcomes. In August 2017, non-clinical data describing the unique properties and anti-tumor activity of FATE-NK100 were published by Cancer Research (doi:10.1158/0008-5472.CAN-17-0799), a peer-reviewed journal of the American Association of Cancer Research. Three clinical trials of FATE-NK100 are currently being conducted: VOYAGE for the treatment of refractory or relapsed acute
myelogenous leukemia; APOLLO for the treatment of recurrent ovarian cancer; and DIMENSION for the treatment of advanced solid tumors, including in combination with monoclonal antibody therapy.
ProTmune is an investigational next-generation hematopoietic cell graft for the prevention of acute graft-versus-host disease (GvHD) in patients undergoing allogeneic hematopoietic cell transplantation (HCT). ProTmune is manufactured by pharmacologically modulating a donor-sourced, mobilized peripheral blood graft ex vivo with two small molecules (FT1050 and FT4145) to decrease the incidence and severity of acute GvHD while maintaining the anti-leukemia activity of the graft. ProTmune has been granted Orphan Drug and Fast Track Designations by the U.S. Food and Drug Administration, and Orphan Medicinal Product Designation by the European Commission. ProTmune is currently being investigated in a randomized, controlled and double-blinded Phase 2 clinical trial in adult subjects with hematologic malignancies undergoing matched unrelated donor HCT.
About Fate Therapeutics' iPSC Product Platform
The Company's proprietary iPSC product platform enables mass production of off-the-shelf, engineered, homogeneous cell products that can be administered in repeat doses to mediate more effective pharmacologic activity, including in combination with cycles of other cancer treatments. Human iPSCs possess the unique dual properties of unlimited self-renewal and differentiation potential into all cell types of the body. The Company's first-of-kind approach involves engineering human iPSCs in a one-time genetic modification event, and selecting a single iPSC for maintenance as a clonal master iPSC line. Analogous to master cell lines used to manufacture biopharmaceutical drug products such as monoclonal antibodies, clonal master iPSC lines are a renewable source for consistently and repeatedly manufacturing homogeneous cell products in quantities that support the treatment of patients in an off-the-shelf manner. Fate Therapeutics' iPSC product platform is supported by an intellectual property portfolio of over 100 issued patents and 100 pending patent applications.
About Fate Therapeutics, Inc.
Fate Therapeutics is a clinical-stage biopharmaceutical company dedicated to the development of first-in-class cellular immunotherapies for cancer and immune disorders. The Company is pioneering the development of off-the-shelf cell therapies using its proprietary induced pluripotent stem cell (iPSC) product platform. The Company's immuno-oncology pipeline is comprised of FATE-NK100, a donor-derived natural killer (NK) cell cancer immunotherapy that is currently being evaluated in three Phase 1 clinical trials, as well as iPSC-derived NK cell and T-cell immunotherapies, with a focus on developing augmented cell products intended to synergize with checkpoint inhibitor and monoclonal antibody therapies and to target tumor-specific antigens. The Company's immuno-regulatory pipeline includes ProTmune , a next-generation donor cell graft that is currently being evaluated in a Phase 2 clinical trial for the prevention of graft-versus-host disease, and a myeloid-derived suppressor cell immunotherapy for promoting immune tolerance in patients with immune disorders. Fate Therapeutics is headquartered in San Diego, CA. For more information, please visit www.fatetherapeutics.com.
Forward-Looking Statements
This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 including statements regarding the Company's results of operations, financial condition and sufficiency of its cash and cash equivalents to fund its operations, as well as statements regarding the advancement of and plans related to its product candidates, clinical studies and preclinical research and development programs, the Company's progress, plans and timelines for its manufacture and clinical investigation of ProTmune and FATE-NK100 and its manufacture, preclinical development and intended clinical investigation of its iPSC-derived product candidates, including FT500, the timing for the Company's receipt of data from its clinical trials and preclinical studies, the Company's development and regulatory strategy, and the therapeutic and market potential of the Company's product candidates. These and any other forward-looking statements in this release are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risk that results observed in prior studies of its product candidates, including preclinical studies and clinical trials of ProTmune and FATE-NK100, will not be observed in ongoing or future studies involving these product candidates, the risk of a delay in the initiation of, or in the enrollment or evaluation of subjects in, any clinical studies, the risk that the Company may cease or delay preclinical or clinical development of any of its product candidates for a variety of reasons (including requirements that may be imposed by regulatory authorities on the initiation or conduct of clinical trials or to support regulatory approval, difficulties or delays in subject enrollment in current and planned clinical trials, difficulties in manufacturing or supplying the Company's product candidates for clinical testing, and any adverse events or other negative results that may be observed during preclinical or clinical development), and the risk that the Company's expenditures may exceed current expectations for a variety of reasons. For a discussion of other risks and uncertainties, and other important factors, any of which could cause the Company's actual results to differ from those contained in the forward-looking statements, see the risks and uncertainties detailed in the Company's periodic filings with the Securities and Exchange Commission, including but not limited to the Company's most recently filed periodic report, and from time to time in the Company's press releases and other investor communications. Fate Therapeutics is providing the information in this release as of this date and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.
Availability of Other Information about Fate Therapeutics, Inc.
Investors and others should note that the Company routinely communicates with investors and the public using its website (www.fatetherapeutics.com) and its investor relations website (ir.fatetherapeutics.com) including, without limitation, through the posting of investor presentations, SEC filings, press releases, public conference calls and webcasts on these websites. The information posted on these websites could be deemed to be material information. As a result, investors, the media, and others interested in Fate Therapeutics are encouraged to review this information on a regular basis. The contents of the Company's website, or any other website that may be accessed from the Company's website, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except share and per share data)
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 30, | June 30, | ||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||||
| Collaboration revenue | $ | 1,027 | $ | 1,026 | $ | 2,053 | $ | 2,053 | |||||||||
| Operating expenses: | |||||||||||||||||
| Research and development | 16,816 | 7,927 | 28,292 | 15,893 | |||||||||||||
| General and administrative | 3,816 | 2,669 | 7,420 | 5,701 | |||||||||||||
| Total operating expenses | 20,632 | 10,596 | 35,712 | 21,594 | |||||||||||||
| Loss from operations | (19,605 | ) | (9,570 | ) | (33,659 | ) | (19,541 | ) | |||||||||
| Other income (expense): | |||||||||||||||||
| Interest income | 376 | 137 | 707 | 248 | |||||||||||||
| Interest expense | (425 | ) | (212 | ) | (837 | ) | (478 | ) | |||||||||
| Total other expense, net | (49 | ) | (75 | ) | (130 | ) | (230 | ) | |||||||||
| Net loss | $ | (19,654 | ) | $ | (9,645 | ) | $ | (33,789 | ) | $ | (19,771 | ) | |||||
| Other comprehensive loss: | |||||||||||||||||
| Unrealized loss on available-for-sale securities, net | (2 | ) | (5 | ) | (12 | ) | (38 | ) | |||||||||
| Comprehensive loss | $ | (19,656 | ) | $ | (9,650 | ) | $ | (33,801 | ) | $ | (19,809 | ) | |||||
| Net loss per common share, basic and diluted | $ | (0.37 | ) | $ | (0.23 | ) | $ | (0.64 | ) | $ | (0.48 | ) | |||||
| Weighted-average common shares used to compute basic and diluted net loss per share | 53,130,518 | 41,406,367 | 52,947,926 | 41,397,398 |
Condensed Consolidated Balance Sheets
| June 30, | December 31, | |||||||
| 2018 | 2017 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 36,162 | $ | 88,952 | ||||
| Short-term investments and related maturity receivables | 41,857 | 11,997 | ||||||
| Prepaid expenses and other current assets | 2,015 | 1,647 | ||||||
| Total current assets | 80,034 | 102,596 | ||||||
| Long-term assets | 3,121 | 2,696 | ||||||
| Total assets | $ | 83,155 | $ | 105,292 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 11,886 | $ | 8,932 | ||||
| CIRM award liability | 600 | - | ||||||
| Long-term debt, current portion | 2,011 | - | ||||||
| Current portion of deferred revenue | 1,776 | 2,105 | ||||||
| Other current liabilities | - | 12 | ||||||
| Total current liabilities | 16,273 | 11,049 | ||||||
| Long-term debt, net of current portion | 12,835 | 14,808 | ||||||
| CIRM award liability | 400 | - | ||||||
| Deferred revenue | - | 724 | ||||||
| Other long-term liabilities | 1,822 | 1,522 | ||||||
| Stockholders' equity | 51,825 | 77,189 | ||||||
| Total liabilities and stockholders' equity | $ | 83,155 | $ | 105,292 |
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