Needham analyst Gil Blum has maintained their neutral stance on FATE stock, giving a Hold rating on October 25.
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Gil Blum has given his Hold rating due to a combination of factors related to the clinical trial results of Fate Therapeutics’ FT819. The updated results showed some signs of activity in patients treated with the therapy, but concerns about the durability of the response remain. Specifically, while there were reductions in disease activity for most patients in one regimen, there was a noted relapse in one patient after 12 months. Additionally, the response in patients who did not receive lymphodepletion was minimal, raising questions about the overall efficacy of the treatment.
Moreover, while the allogeneic nature of FT819 could allow for easier redosing, the limited data available, including the small number of patients reaching the 12-month mark and the occurrence of adverse events like cytokine release syndrome and infections, contribute to the uncertainty about the long-term effectiveness of the therapy. These factors combined lead to the decision to maintain a Hold rating, as the potential benefits are tempered by the current limitations and risks observed in the trial.
In another report released on October 25, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $1.50 price target.