Barclays Maintains Buy Rating on Fate Therapeutics with $2.00 Price Target

Fate Therapeutics (FATE) received a Buy rating from Barclays analyst Peter Lawson, with a $2.00 price target. The company reported a quarterly revenue of $1.63 million and a GAAP net loss of $37.62 million. The analyst consensus rating is Hold, with an average price target of $4.41. Corporate insider sentiment is negative, with 12 insiders selling shares over the past quarter.

Fate Therapeutics (FATE), a clinical-stage biopharmaceutical company focused on induced pluripotent stem cell (iPSC)-derived off-the-shelf cellular immunotherapies, recently announced a significant corporate restructuring aimed at extending its operational runway. The company's Board of Directors approved a restructuring plan on August 7, 2025, which includes a workforce reduction of approximately 12%. This strategic move is expected to result in one-time charges of $0.9 million to $1.2 million for severance and termination-related costs during the third quarter of 2025. This decisive action, alongside other cost-saving measures and pipeline prioritization, is projected to extend Fate Therapeutics' cash runway through the end of 2027.

As of June 30, 2025, the company held $248.9 million in cash, cash equivalents, and investments. Financially, Fate Therapeutics reported $1.9 million in revenue for the second quarter of 2025, primarily from its preclinical collaboration with Ono Pharmaceutical. While this represents a decrease from $6.8 million in the same period last year, the company demonstrated a notable reduction in operating expenses. Total operating expenses for Q2 2025 were $38.9 million, down 25% from $51.9 million in Q2 2024. This led to a net loss of $34.1 million for the quarter, an 11% improvement from the $38.4 million loss reported in Q2 2024.

The strategic operational adjustments coincide with pivotal advancements across Fate Therapeutics' clinical pipeline. The company's lead candidate, FT819, an iPSC-derived CAR T-cell therapy for autoimmune diseases, continues to show promising results. The FDA granted FT819 a Regenerative Medicine Advanced Therapy (RMAT) designation in April 2025 for moderate-to-severe Systemic Lupus Erythematosus (SLE), including Lupus Nephritis (LN). Fate Therapeutics has already engaged in preliminary discussions with the FDA regarding a registrational study design, with plans to initiate this study in 2026.

In addition, Fate Therapeutics received a Buy rating from Barclays analyst Peter Lawson, with a $2.00 price target. The analyst consensus rating is Hold, with an average price target of $4.41. Corporate insider sentiment is negative, with 12 insiders selling shares over the past quarter.

Fate Therapeutics is expanding the FT819 study to investigate other B cell-mediated autoimmune diseases, including anti-neutrophil cytoplasmic antibody-associated vasculitis, idiopathic inflammatory myositis, and systemic sclerosis, with dose-expansion cohorts expected to begin in the second half of 2025. Beyond FT819, the company is advancing its next-generation CAR T-cell programs featuring its novel Sword & Shield™ technology, designed to reduce or eliminate the need for conditioning chemotherapy. The FDA recently allowed the Investigational New Drug (IND) application for FT836, a MICA/B-targeted CAR T-cell candidate, for conditioning-free treatment of advanced solid tumors. This program is supported by a $4 million award from the California Institute of Regenerative Medicine. Additionally, the company has created a master iPSC bank for FT839, a dual-CAR T-cell candidate targeting CD19/CD38, with preclinical data demonstrating broad eradication of aberrant immune cells. Clinical investigation for FT839 in hematological malignancies and autoimmunity is being evaluated for a 2026 start.

Fate Therapeutics also extended its collaboration with Ono Pharmaceutical for a second iPSC-derived CAR T-cell candidate for solid tumors, ensuring continued co-funding through at least June 2026. According to Dr. Bob Valamehr, President and CEO of Fate Therapeutics, “Our priority remains focused on driving patient enrollment to demonstrate both the therapeutic differentiation and unique on-demand availability of FT819 in autoimmune diseases. Operationally, we have taken proactive steps to optimize our resource allocation and extend our cash runway, positioning us well to continue executing across our pipeline, working to bring transformative off-the-shelf cellular immunotherapies to patients with unmet needs.”

This dual focus on financial prudence and clinical execution underscores Fate Therapeutics' commitment to bringing innovative cell therapies to market.

References:
[1] https://www.panabee.com/news/fate-therapeutics-extends-cash-runway-through-2027-driven-by-promising-conditioning-free