Fate Therapeutics Initiated With Hold Rating - Read Why - Fate Therapeutics (NASDAQ:FATE)

Needham initiated coverage on Fate Therapeutics Inc FATE with a Hold rating without a price target.
The company is working on induced pluripotent stem cell (iPSC) derived cancer therapeutics, primarily NK cells.
Needham says that Fate's platform has several appealing qualities:
- NK cells are natively allogeneic.
- Using iPSCs allows for improved scalability and controlled COGS while achieving efficacies in line with the most advanced therapeutics.
- Early proof of concept was achieved in B-cell leukemias & lymphomas (BCL) and acute myeloid leukemia.
Related: Despite Durability Questions, BMO Upgraded This Natural-Killer Cell Therapy Oncology Stock.
However, questions regarding treatment durability remain.
In BCL, durability is trending towards a ~27% CR rate at six months, which is on the low end compared to commercial CAR-Ts (29-36%).
Longer-term follow-up from allogeneic programs can provide a better understanding of treatment durability.
"We consider Fate's platform a compelling solution in solid tumors, despite NK iPSCs having low activity at baseline. At current levels, we consider FATE fully valued based on its potential in hematological malignancies," said Needham.
Price Action: FATE shares are down 2.77% at $32.25 during the market session on the last check Thursday.

Fate Therapeutics Initiated With Hold Rating - Read Why