Fate Therapeutics, Inc.
Mar 16, 2017

Fate Therapeutics Reports Fourth Quarter 2016 Financial Results

First Subject Treated with ProTmune™ for GvHD Prevention

IND Cleared by FDA for FATE-NK100 Natural Killer Cell Product Candidate in AML

First-of-Kind Cancer Immunotherapy Derived from Engineered Pluripotent Cell Line to Begin Clinical Translation

iPSC-derived NK Cell Research Collaboration Launched with Oslo University Hospital

SAN DIEGO, March 16, 2017 (GLOBE NEWSWIRE) -- Fate Therapeutics, Inc. (NASDAQ:FATE), a clinical-stage biopharmaceutical company dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders, today reported business highlights and financial results for the fourth quarter and year ended December 31, 2016.

"The past twelve months has been a period of significant progress for Fate Therapeutics, including advancing two first-in-class product candidates to clinical development and launching our revolutionary induced pluripotent cell platform to enable our ‘one cell, many patients' approach to cancer immunotherapy. We have recently treated the first subject in our PROTECT study with ProTmune, our next-generation mobilized peripheral blood graft with the potential to change the field of allogeneic hematopoietic cell transplantation, and FDA clearance was granted for clinical investigation of FATE-NK100, our first-in-class adaptive memory natural killer cell product candidate. Additionally, we established collaborations with Dr. Jeffrey S. Miller at the University of Minnesota and Dr. Michel Sadelain at Memorial Sloan Kettering Cancer Center to build our off-the-shelf cancer immunotherapy pipeline using master pluripotent cell lines," said Scott Wolchko, President and Chief Executive Officer of Fate Therapeutics. "Looking ahead to a data-rich 2017, having recently raised approximately $70 million from a leading investor syndicate, we are in a position of financial strength and are poised to be the first company to advance a cancer immunotherapy created from a master pluripotent cell line toward clinical development."

Recent Highlights & Program Updates

Fourth Quarter 2016 Financial Results

Today's Conference Call and Webcast

The Company will conduct a conference call today, Thursday, March 16, 2017 at 5:00 p.m. ET to review financial and operating results for the quarter ended December 31, 2016. In order to participate in the conference call, please dial 1-877-303-6235 (domestic) or 1-631-291-4837 (international) and refer to conference ID 85799370. The live webcast can be accessed under "Events & Presentations" in the Investors & Media section of the Company's website at www.fatetherapeutics.com. The archived webcast will be available on the Company's website beginning approximately two hours after the event.

About Fate Therapeutics, Inc.

Fate Therapeutics is a clinical-stage biopharmaceutical company dedicated to the development of programmed cellular immunotherapies for cancer and immune disorders. The Company's hematopoietic cell therapy pipeline is comprised of NK- and T-cell immuno-oncology programs, including off-the-shelf product candidates derived from engineered induced pluripotent cells, and immuno-regulatory programs, including product candidates to prevent life-threatening complications in patients undergoing hematopoietic cell transplantation and to promote immune tolerance in patients with autoimmune disease. Its adoptive cell therapy programs are based on the Company's novel ex vivo cell programming approach, which it applies to modulate the therapeutic function and direct the fate of immune cells. Fate Therapeutics is headquartered in San Diego, CA. For more information, please visit www.fatetherapeutics.com.

Forward-Looking Statements

This release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company's advancement of and plans related to the Company's product candidates, clinical studies, research and development programs, and partnerships, the Company's progress and plans for its clinical investigation of ProTmune™ and of FATE-NK100, the Company's expected product registration strategy for ProTmune, including its ability to pursue accelerated registration, the ability of ProTmune to prevent, or reduce the incidence or severity of life-threatening complications, including acute graft-versus-host disease and severe viral infections, the scope of the Company's intellectual property, and the Company's projected cash expenditures. These and any other forward-looking statements in this release are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risk that results observed in prior studies, including preclinical studies of ProTmune and the Company's other product candidates, will not be observed in ongoing or future studies involving these product candidates, the risk that the Company may cease or delay preclinical or clinical development activities for any of its existing or future product candidates for a variety of reasons (including requirements that may be imposed by regulatory authorities and requirements for regulatory approval, difficulties or delays in patient enrollment in current and planned clinical trials, and any adverse events or other negative results that may be observed during preclinical or clinical development), the risk that the Company's research collaborations may not be successful or may be terminated, and the risk that the Company's expenditures may exceed current expectations for a variety of reasons. For a discussion of other risks and uncertainties, and other important factors, any of which could cause our actual results to differ from those contained in the forward-looking statements, see the risks and uncertainties detailed in the Company's periodic filings with the Securities and Exchange Commission, including but not limited to the Company's most recently filed periodic report, and from time to time the Company's other investor communications. Fate Therapeutics is providing the information in this release as of this date and does not undertake any obligation to update any forward-looking statements contained in this release as a result of new information, future events or otherwise.

Availability of Other Information about Fate Therapeutics, Inc.

Investors and others should note that the Company routinely communicates with investors and the public using its website (www.fatetherapeutics.com) and its investor relations website (ir.fatetherapeutics.com), including without limitation, through the posting of investor presentations, SEC filings, press releases, public conference calls and webcasts on these websites. The information posted on these websites could be deemed to be material information. As a result, investors, the media, and others interested in Fate Therapeutics are encouraged to review this information on a regular basis. The contents of the Company's website, or any other website that may be accessed from the Company's website, shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.

  
Condensed Consolidated Statements of Operations and Comprehensive Loss 
(in thousands, except share and per share data) 
  
  Three Months Ended
December 31,
  Years Ended
December 31,
 
  2016  2015  2016  2015 
                 
  (unaudited) 
Collaboration revenue $1,027  $1,076  $4,402  $2,431 
Operating expenses:                
Research and development  6,230   5,433   26,452   19,861 
General and administrative  2,451   2,555   9,913   10,352 
Total operating expenses  8,681   7,988   36,365   30,212 
Loss from operations  (7,654)  (6,912)  (31,963)  (27,782)
Other income (expense):                
Interest income  43   3   138   10 
Interest expense  (329)  (537)  (1,637)  (2,220)
Total other expense, net  (286)  (534)  (1,499)  (2,210)
Net loss $(7,940) $(7,446) $(33,462) $(29,992)
Other comprehensive loss:                
Unrealized loss on available-for-sale securities, net  (4)     (1)   
Comprehensive loss $(7,944) $(7,446) $(33,463) $(29,992)
Net loss per common share, basic and diluted $(0.21) $(0.26) $(1.05) $(1.18)
Weighted-average common shares used to compute basic and diluted net loss per share  37,216,488   28,687,797   31,754,140   25,484,262 
                 


Condensed Consolidated Balance Sheets 
(in thousands) 
  
   December 31,   December 31, 
   2016   2015 
   (unaudited)     
Assets        
Current assets:        
Cash and cash equivalents $88,609  $64,809 
Short-term investments  3,503    
Prepaid expenses and other current assets  1,211   843 
Total current assets  93,323   65,652 
Long-term assets  1,725   2,306 
Total assets $95,048  $67,958 
         
Liabilities and stockholders' equity        
Current liabilities:        
Accounts payable and accrued expenses $4,891  $3,435 
Long-term debt, current portion  8,187   7,550 
Current portion of deferred revenue  2,105   2,401 
Other current liabilities  4   55 
Total current liabilities  15,187   13,441 
Long-term debt, net of current portion  2,501   10,688 
Deferred revenue  2,829   4,934 
Other long-term liabilities  1,377   857 
Stockholders' equity  73,154   38,038 
Total liabilities and stockholders' equity $95,048  $67,958 
         


 

Contact:

Christina Tartaglia
Stern Investor Relations, Inc.
212.362.1200
christina@sternir.com