GILD - Fate Therapeutics gains as Wells Fargo cites upcoming catalysts

The shares of clinical-stage biotech Fate Therapeutics ( NASDAQ: FATE ) inched higher in the pre-market trading Thursday after Wells Fargo resumed its coverage with an Overweight recommendation citing two key upcoming catalysts scheduled for Q4 2022.

The analysts James Shin and the team point to a positively skewed risk-reward setup for the company ahead of two data readouts for several drug candidates for cancer.

According to Wells Fargo, data expected in November for FATE’s cancer immunotherapies FT536/ FT538 in solid tumors could add $10 per share upside depending on the early response (up to $3 per share downside).

Meanwhile, updates on FT538 and FT516/596 in liquid tumors such as acute myeloid leukemia and B cell lymphoma could help lift FATE by $3 per share ($2 per share downside), the analysts added, raising their price target on the stock to $90 from $125 per share.

While a disappointing small data set FATE announced for its candidates FT500/516 hurt its prospects in solid tumors, FT536/538 looks more advanced and merits a fresh view given the recent advances in antibody-drug conjugates (ADC), the analysts added.

The bullish view on FATE’s solid tumor candidates comes after Gilead ( GILD ) announced Monday that its ADC Trodelvy significantly improved overall survival in a Phase 3 trial involving certain patients with HR+/ HER2- metastatic breast cancer.

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