Markets

Fate Stock Plunges 7% Following Redmile Amendment Tied To A Changed Share Count

The ownership update reflected no new trading, while Fate reported early lupus responses without preparatory chemotherapy.

Fate Therapeutics, which develops cell therapies still in human testing, plunged 7.22% to $1.80 in Tuesday trading, as of 11:30 AM ET, erasing $17 million in market value. The decline followed Redmile Group's Monday SEC ownership amendment, which tied a fund's reporting-threshold crossing to Fate's changed share count rather than trades since the preceding amendment.

A Rally Meets Another Sharp Drop

Fate was on pace for its second drop of 7% or more this month. Its market value stood at about $219 million in Tuesday trading, as of 11:30 AM ET.

The stock's recent weakness sits alongside a substantial rally for the year. Through Monday's close, Fate had gained 97%, compared with the S&P 500's 10% rise, but it had fallen 11% over the previous month.

Lupus Responses Without Preparatory Chemotherapy

Fate reported Tuesday that all three lupus patients given its experimental FT819 treatment without preparatory chemotherapy had measurable responses. Two met remission criteria.

Across 36 patients receiving FT819 for autoimmune disease, there were no dose-limiting toxicities — adverse effects severe enough to restrict dosing. Those findings remain early clinical results for an experimental treatment.

Fate uses engineered induced pluripotent stem cells as a renewable starting point for disease-fighting T cells and natural killer cells. FT819 is designed as an off-the-shelf treatment, manufactured from a master cell bank rather than a patient's or donor's cells.

The company is also advancing a mid-stage FT819 study for lupus nephritis, the form of lupus affecting the kidneys. Thursday's earnings release said enrollment was open at 17 active sites. Fate expects approximately 53 patients to receive a single 900-million-cell dose after bendamustine conditioning; the main goal is complete renal response at week 26.

A separate early- to mid-stage autoimmune trial is evaluating FT839 alongside standard treatment without requiring conditioning chemotherapy. The FDA cleared its investigational application in July 2026.

Funding The Autoimmune Trials

Fate reported zero revenue and a $30.7 million net loss for the third quarter ended September 30, 2026. Financing remains central to a business whose candidates are still being tested.

Thursday's earnings release listed $139.1 million in cash and investments and a $15 million grant from the California Institute for Regenerative Medicine to support the lupus-nephritis study. Fate said those resources extend its funding to mid-2028.