Here's Why Fate Therapeutics Rose as Much as 18.7% Today
Shares of Fate Therapeutics (NASDAQ: FATE) gained over 18% today after the company announced an equity investment from and a partnership with Johnson & Johnson subsidiary Janssen. The pair will leverage their respective technology platforms in cellular medicine to develop immunotherapy drug candidates targeting cancers.
Fate Therapeutics will receive an up-front cash payment of $50 million and a matching equity investment of $50 million. The development-stage company is eligible to receive up to $1.8 billion in development and regulatory milestone payments, up to $1.2 billion in commercial milestone payments, and double-digit royalties on future sales. Janssen will fund the development of drug candidates through the time investigational new drug (IND) applications are filed. The pair will likely announce funding commitments for clinical trials at that time.
As of 11:08 a.m. EDT, the pharma stock had settled to a 9.5% gain.
Source Fool.com
