Fate Therapeutics (FATE) shares jumped 17% in recent Monday trading after the company reported positive phase 1 data on the treatment for systemic lupus erythematosus.

"These initial results are incredibly promising," Dr. Jennifer Medlin, principal investigator at the University of Nebraska Medical Center, said Monday in a statement. "Our patient not only went into drug-free clinical remission but also had resolution of fatigue, something that we as rheumatologists struggle to improve with our treatments."

The first patient, a 27-year-old woman with kidney inflammation due to lupus, went into remission after one dose of FT819 without needing additional chemotherapy, and she has stayed in remission for six months without other immune-suppressing drugs and hasn't had serious side effects, Fate Therapeutics said.

The treatment appears safe and effective, and it might help reset the immune system by eliminating harmful B-cells, the company said.

Fate Therapeutics started a new part of the study to see if FT819 can be used alongside other treatments without chemotherapy.

Price: 2.36, Change: +0.34, Percent Change: +16.79