Fate Therapeutics (FATE) delivered mixed results for its lymphoma treatments, which caused Fate stock to crumble on Friday.
The company said late Thursday it is working on a treatment for a blood cancer called B-cell lymphoma. After treatment with a drug called FT516, six patients achieved a complete response — meaning they showed no signs of cancer. However, the cancer returned and worsened in two patients roughly four to five months later. Another patient with a partial response later needed an additional anti-cancer treatment.
Still, analysts were bullish on the results, which they say prove the concept of Fate's technology. Fate is working to activate so-called natural killer cells. As their name suggests, these cells find, bind to and destroy cancer cells.
"Overall, we found the event to be positive for Fate with the first indication of iNK (induced natural killer) response durability," SVB Leerink analyst Daina Graybosch said in a report to clients.
But in morning trading on the stock market today, Fate stock tumbled 19.4% near 69.
Fate Stock: Anti-Cancer Mechanism
Investors were spooked Friday on the potential for waning durability in lymphoma. The company is working on two treatments called FT516 and FT596.
Researchers evaluated 14 patients treated with FT596. In that group, 10 patients responded, including seven that had complete responses. The company also evaluated 11 patients who received FT516. Of those, a total of eight patients responded. That included the six complete responses.
Among the latter eight patients, five maintained their responses without additional treatment. But investors in Fate stock focused on the two patients that progressed after having been deemed complete responders. Their cancer returned and worsened at 4.2 months and 5.1 months following treatment.
Another patient who experienced a partial response required an additional treatment at 4.1 months.
It's important to note, most patients in both groups were heavily pretreated. In the study of FT596, patients had undergone a median of four prior treatments. In the FT516 group, patients had received and worsened while on a median of three prior treatments.
Complete Responses Questioned
Fate's technology could offer a lower-cost competitor to other cancer drugs called CAR-T therapy, short for chimeric antigen receptor T-cell therapy.
Fate is using engineered cells, while first-generation CAR-T drugs from Gilead Sciences (GILD) and Novartis (NVS) harvest cells from sick patients. Second-generation competitors aim to use donor cells, a process called allogeneic CAR-T. Fate is trying to leapfrog both with a master line of cells that can be cloned.
But the company remained sunny on its opportunity in B-cell lymphoma.
The data demonstrate the products "can uniquely deliver substantial therapeutic benefit and expand patient access to cell-based cancer immunotherapies," Chief Executive Scott Wolchko said in a written statement.
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