Allogene's Q4 Loss Narrower Than Expected, Revenues Nil

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Allogene Therapeutics ALLO incurred a loss of 28 cents per share in fourth-quarter 2024, narrower than the Zacks Consensus Estimate of a loss of 34 cents. In the year-ago period, the company had incurred a loss of 51 cents per share.

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ALLO did not generate revenues during the reported quarter. The Zacks Consensus Estimate for fourth-quarter sales was pegged at $0.07 million. In the year-ago period, the company recorded revenues of $0.02 million.

Year to date, shares of Allogene have lost 11% against the industry’s 6% growth.

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More on ALLO’s Q4 Results

Research & development (R&D) expenses totaled $45 million, down 18% from the year-ago quarter’s level.

General and administrative (G&A) expenses declined 10% year over year to $15.5 million.

As of Dec. 31, 2024, Allogene had $373.1 million of cash, cash equivalents and investments, compared with $403.4 million as of Sept. 30, 2024. The company claims that its cash runway will fund operations into the second half of2026.

Full-Year Results

In 2024, Allogene recorded total revenues of $0.2 million, down 77% year over year.

The company reported a loss of $1.32 per share for the year, narrower than the year-ago period’s loss of $2.09.

ALLO’s 2025 Guidance

Allogene anticipates operating expenses for the full year to be around $250 million, including non-cash stock-based compensation expenses of nearly $50 million.

Cash burn for 2025 is expected to be around $170 million.

Updates on ALLO’s Pipeline

Allogene’s main focus is on the pivotal phase II ALPHA3 study, which is evaluating lead drug cema-cel as a potential first-line treatment for newly diagnosed and treated large B cell lymphoma (LBCL) patients who are likely to relapse and need further therapy. While the company expects top-line data from this study by 2026-end, a regulatory submission for the same is planned for 2027.

Last month, Allogene published updated data from the now deprioritized phase I ALPHA and ALPHA2 studies, which evaluated cema-cel in third-line LBCL. Data from these studies showed that treatment with cema-cel is effective in patients who have low disease burden. In our opinion, these results provide more confidence in management’s pivot to develop cema-cel as a front-line therapy.

The lymphodepletion selection and futility analysis from the ALPHA3 study is expected around mid-2025. This analysis will provide insight into whether the company’s approach could meet its objectives.

Allogene is also planning to explore the potential of allogeneic CAR-T cell therapies in autoimmune diseases. In this regard, it plans to start an early-stage study with a new candidate, ALLO-329, in lupus/systemic lupus erythematosus (SLE) indication in mid-2025 and expects to have proof-of-concept by 2025-end.

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