Fate Therapeutics Inc. (NASDAQ:FATE) shares continue to extend the momentum in Tuesday trade, supported by investors bullish bets on its future fundamentals and advancement in key pipeline products. Fate Therapeutics shares improved 14% in Tuesday’s trade, the stock is up 44% in the last month alone, driven by a sharp growth in trading volume.
Fate Therapeutics shares volume doubled in Tuesday trade, increasing to 1.4 million shares, compared to the daily average of 477,484 shares.
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Currently trading around $9.50 per share, FATE stock price increased almost 100% in the last three months. Fate Therapeutics shares price has a 52-week trading range of $2.52-$9.78.
Fate Therapeutics is a biopharmaceutical company focused on developing adult stem cell modulators to treat lysosomal storage disorders, hematologic malignancies, and muscular dystrophies.
The significant growth in its share price was due to the positive preliminary results from its Phase 1/2 clinical trial assessing programmed cellular immunotherapy ProTmune in blood cancer patients.
The company has received Fast Track and Orphan Drug Designations from the U.S. Food and Drug Administration. Moreover, Fate Therapeutics also received Orphan Medicinal Product Designation from the European Medicines Agency for ProTmune.
The CEO stated, “We are conducting a multi-center Phase 1/2 clinical trial of ProTmune in adult subjects with hematologic malignancies undergoing matched unrelated donor mobilized peripheral blood HCT. The PROTECT study is intended to evaluate the safety and tolerability of ProTmune, and to assess the potential of ProTmune to prevent acute GvHD.”
Since the announcement of the potential acquisition of Juno Therapeutics for $9 billion, the stocks of companies developing immunotherapies also increased sharply in the last two sessions. On the other hand, Fate Therapeutics is in a partnership agreement with Juno Therapeutics on developing an early-stage program.
Several analysts and rating agencies have increased their price targets for Fate Therapeutics. Following the recent activities, Zacks Investment Research has upgraded its stock to buy from hold ratings. Zack has set a new target price of $8 per share. However, FATE has already breached the price target in today’s trade. Overall, Fate Therapeutics market fundamentals are strong to support the share price momentum.
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