FATE - Needham initiates Fate coverage Therapeutics on potential of stem cell therapies

• Needham has initiated coverage on Fate Therapeutics ( NASDAQ: FATE ) with a hold rating citing the potential of its stem cell cancer therapies.
• Fate develops induced pluripotent stem cell (iPSC) derived cancer therapeutics, primarily NK cells, which can address several challenges in cell therapy. They are off-the-shelf as opposed to current CAR-T therapies and allow for large-scale manufacturing and relatively easier genetic engineering.
• Analyst Gil Blum wrote, " Fate's lead programs in B-cell lymphomas and acute myeloid leukemia have potential in ~35,000 patients combined and have demonstrated promising early data. Even assuming cellular therapeutic pricing (~$300K in the US) and achievement of significant market penetration, we find FATE shares fully valued at this time."
• "Early POC was achieved in both BCL and AML. However, questions regarding treatment durability remain. We consider Fate's platform a compelling solution in solid tumors, despite NK iPSCs having low activity at baseline. Reports of clinical activity in solid tumors could be transformational for Fate," Blum adds.
• Needham's neutral rating on FATE is in line with SA Quant rating of hold.
• Shares dipped -5.46% to $31.36 today

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