Fate Therapeutics Inc (FATE)

[Spideyboy]

To JRMKE: Apologies for sending this as a public reply back to your private message, but I have not paid for and see no need to pay to upgrade my account to allow for private messages.

In-following from you post that for reference I have copied at the end of this post, please see my reply here:
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Incorrect JRMKE.

https://ir.fatetherapeutics.com/news-releases/news-release-details/fate-therapeutics-reports-third-quarter-2018-financial-results

If you look properly at the 2018 third quarter results PR you will see,

"R&D Expenses: Research and development expenses were $13.6 million for the third quarter of 2018"

"G&A Expenses: General and administrative expenses were $4.1 million for the third quarter of 2018"

Thus adding up to 17.7 million for the third quarter, rounding up to 18 million, and so including higher expenses relating to the new clinical trials we are looking at about or more than 20 million cash burn per quarter.

A company's running costs are more than just its R&D Expenses, which it appears is the only number you are referring to with your "13M", for their quarterly burn.

Therefore the recent raise of 144 million will last them about 1 year and a couple months as I previously stated.

Please refrain from writing replies insinuating negligence on the part of others when you haven't looked at all the relevant numbers, which is indeed negligent on your part.

Thank you.

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JRMKE
Friday, December 28, 2018 8:37:09 AM

FATE's cash burn rate is not 20M per quarter, it is 13M! Yes, the IND clearance for FT500 will increase their burn rate, but that will be mitigated by their recent HQ exapnsion (Summer 2018) and their ability to manufacture the IPSC cells in house. Their cash runaway should last them 3-4 quarters more than you state and their recent partnership with Ono will also save them desperately needed cash to get to commercialization. Will more capital raises be needed, between now and then--absolutely! However, posting a burn rate numbers that are off by almost 100% is negligent on your part.