It was a huge day for biotech stock Allogene Therapeutics (NASDAQ:ALLO), who surged an impressive 20% in Friday afternoon’s trading. A combination of factors gave Allogene a boost, including some solid earnings results and some new data around its treatment lineup.
Allogene released its earnings report after hours on Thursday, and gave investors a reason for at least a small sigh of relief. Its losses proved to be less than expected; Allogene posted earnings of $0.37 per share, which was a far cry from a projected loss of $0.52 per share. Also, Allogene posted revenue of $0.04 million, which again readily beat projections of just $0.01 million. Further, with just under $500 million in cash and equivalents on hand—as of September 30, anyway—Allogene should have sufficient cash to get it into the second half of 2025.
After that, however, it’s likely going to need new investment or a product on shelves making it cash. And that’s where the second part of the good news comes in for Allogene. Allogene presented data on not only its “Cloak and Dagger Technologies,” but also for its product candidate ALLO-182. ALLO-182 is designed to face pancreatic cancer tumors, as well as gastric tumors, that are also positive for Claudin 18.2. Meanwhile, Cloak and Dagger, two separate technologies, attack cancers in two different ways: Cloak prevents T cells from recognizing AlloCAR T cells and attacking them, while Dagger outfits the AlloCAR T cells with additional weapons to better tackle tumors.
Is Allogene a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on ALLO stock based on six Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average ALLO price target of $19.25 per share implies 440.73% upside potential.
