BMO Capital analyst Etzer Darout downgraded Fate Therapeutics (FATE) to Market Perform from Outperform with a price target of $7, down from $20, after the company declined a revised proposal to its Johnson & Johnson (JNJ) collaboration and has therefore terminated the agreement. Further, Fate announced a pipeline reprioritization, terminating several programs, and a workforce reduction, Darout tells investors in a research note. The analyst says that while Fate’s actions will help extend its cash runway through 2025, there are limited opportunities for value generation near and medium-term.
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