Fate and J&J end deal that once promised $3B in milestones; biotech cuts staff
Fate Therapeutics said that it agreed with Johnson & Johnson to terminate a partnership they struck in 2020 to develop cancer immunotherapies, a deal that could have been worth as much as $3 billion in milestone payments.
As a result, Fate plans to cut about half of its staff and will stop development of the programs. The San Diego-based company said in a press release that J&J had made a proposal to keep the collaboration going, and that Fate had rejected it. The company’s shares lost almost half their value in after-market trading on Thursday.
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