Fate Therapeutics, Inc., a clinical-stage biopharmaceutical company based in San Diego, California, reported its financial results for the third quarter and nine months ended September 30, 2024. The company continues to focus on developing off-the-shelf, multiplexed-engineered, iPSC-derived cellular immunotherapies for cancer and autoimmune diseases. As of September 30, 2024, Fate Therapeutics had an accumulated deficit of $1.35 billion and has not generated revenue from therapeutic product sales, relying instead on collaboration agreements and government grants.

For the third quarter of 2024, collaboration revenue increased to $3.1 million from $1.9 million in the same period of 2023. However, for the nine months ended September 30, 2024, collaboration revenue significantly decreased to $11.8 million from $61.9 million in the prior year, primarily due to the termination of the collaboration agreement with Janssen Biotech in April 2023. Total operating expenses for the third quarter rose to $55.5 million, compared to $53.2 million in Q3 2023, while net loss for the quarter was $47.7 million, slightly higher than the $45.2 million loss reported in the same quarter of the previous year.

The company’s total current assets as of September 30, 2024, were $310.3 million, down from $331.5 million at the end of 2023. Cash and cash equivalents decreased to $37.9 million from $41.9 million during the same period. The company completed a public equity offering in March 2024, raising approximately $80 million in gross proceeds, which contributed to a net cash inflow of $96.8 million from financing activities for the nine months ended September 30, 2024.

Fate Therapeutics has faced challenges in recruiting and retaining key personnel, which may impact its operational capabilities. The company has also discontinued several NK cell programs to focus on more innovative product candidates. Additionally, it has entered into a collaboration agreement with Ono Pharmaceutical Co., Ltd., which includes potential milestone payments and funding for research and preclinical development.

The company anticipates continued operating losses as it advances its product candidates through clinical trials and seeks regulatory approvals. Future capital requirements are expected to be significant, and the company may pursue additional funding through public or private equity, debt financing, or collaboration arrangements.