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Allogene Therapeutics (ALLO)
:ALLO
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Allogene Therapeutics
(NASDAQ:ALLO)
Rating:43Neutral
Price Target:
$1.50
▲(11.94%Upside)
Positive Factors
Clinical Efficacy
ALLO-316 Phase 1b data at ASCO demonstrates consistent efficacy and safety in a hard-to-treat ccRCC population.
Financial Position
Allogene currently has $335.5M cash and cash equivalents, and lowered cash burn for FY25 to $150M, extending cash runway into 2H27 for the key ALPHA3 readout.
Technological Validation
ALLO-316's results are encouraging and validating of the Dagger technology.
Negative Factors
Clinical Delays
The clinical delay for ALPHA3 was driven by slower-than-expected transitions from site activation to initiation of patient screening.
Comparative Safety
Safety in Phase 1b cohort is consistent with Ph1a study with no new grade 5 and dose-limiting toxicities events, but slightly inferior to belzutifan.
Market Valuation
ALLO is trading well below cash value, reflecting zero value currently ascribed to the company’s pipeline.
Allogene Therapeutics (ALLO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$299.66M
Dividend YieldN/A
Average Volume (3M)3.55M
Price to Earnings (P/E)―
Beta (1Y)1.86
Revenue Growth-100.00%
EPS Growth31.43%
CountryUS
Employees226
SectorHealthcare
Sector Strength55
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.28
Shares Outstanding218,730,800
10 Day Avg. Volume2,717,265
30 Day Avg. Volume3,550,874
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)1.35
Price to Sales (P/S)0.00
P/FCF Ratio-3.99
Enterprise Value/Market Cap6.97
Enterprise Value/Revenue-47.46K
Enterprise Value/Gross Profit-645.86
Enterprise Value/Ebitda-2.08
Forecast
1Y Price Target
$8.15Price Target Upside508.21% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering13
Allogene Therapeutics Business Overview & Revenue Model
Company DescriptionAllogene Therapeutics, Inc. (ALLO) is a biotechnology company dedicated to developing and commercializing allogeneic chimeric antigen receptor T-cell (AlloCAR T™) therapies for cancer. The company operates in the healthcare sector, focusing on innovative cell therapy products that harness the power of the immune system to treat and potentially cure cancer. Allogene's core products leverage proprietary gene-editing technology to create off-the-shelf CAR T-cell therapies designed to target a broad range of hematologic and solid tumors.
How the Company Makes MoneyAllogene Therapeutics generates revenue primarily through partnerships, collaborations, and licensing agreements with other pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestone payments based on the achievement of developmental and regulatory goals, and royalties on potential sales of commercialized products. The company's business model is heavily reliant on research and development funding, as well as strategic alliances that provide access to additional resources and expertise. As of now, Allogene does not generate revenue from product sales, as its therapies are still in clinical development stages.
Allogene Therapeutics Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 18.58%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant progress in clinical trials and financial management, with strong site engagement and promising data, particularly in the ALPHA3 and ALLO-316 programs. However, operational delays and financial losses present challenges. Overall, the sentiment reflects a balanced view with optimism for future achievements.Q1-2025 Updates
Positive Updates
Strong Site Engagement for ALPHA3 Trial
The ALPHA3 trial has seen significant site engagement, with nearly 50 activated U.S. sites and plans for international expansion. Over 250 patients have consented for MRD screening, with nearly half in the last three months.
Extended Cash Runway
Allogene has extended its cash runway into the second half of 2027, allowing it to navigate market headwinds and continue advancing its trials.
ALLO-316 Shows Promise in Solid Tumors
ALLO-316 continues to show efficacy in patients with advanced renal cell carcinoma, providing hope for heavily pretreated patients. The upcoming oral presentation at ASCO on June 1st is expected to showcase further results.
Advancements in Autoimmune Disease with ALLO-329
ALLO-329 is set to change the treatment of autoimmune diseases with its innovative design that could eliminate lymphodepletion. The RESOLUTION trial is expected to launch mid-2025.
Negative Updates
Operational Hurdles in ALPHA3 Trial
The ALPHA3 trial faced delays due to site-level staffing shortages and administrative hurdles, leading to a shift in milestone timelines by two quarters.
Financial Losses and Cash Burn
Allogene reported a net loss of $59.7 million for Q1 2025, with an expected cash burn of approximately $150 million for the year.
Company Guidance
During Allogene Therapeutics' first quarter 2025 conference call, the company provided detailed guidance on its clinical trials and financial outlook. The ALPHA3 trial aims to redefine treatment for large B cell lymphoma, with over 250 patients consented for MRD screening, nearly half within the last three months. The trial's lymphodepletion regimen selection and futility analysis milestone have been shifted to the first half of 2026, two quarters later than initially planned. Additionally, the ALLO-316 trial in advanced renal cell carcinoma shows promising efficacy, with an upcoming presentation at ASCO. The ALLO-329 RESOLUTION Trial, launching mid-2025, targets autoimmune diseases and proposes eliminating lymphodepletion. The company has extended its cash runway into the second half of 2027, thanks to a refined operational strategy and cost realignment. Financially, Allogene reported $335.5 million in cash, cash equivalents, and investments as of March 31, 2025. The R&D expenses were $50.2 million, with a net loss of $59.7 million for Q1 2025. The full-year 2025 cash burn is expected to be around $150 million, with operating expenses projected at $230 million.Allogene Therapeutics Financial Statement Overview
Summary
Allogene Therapeutics faces significant financial challenges, with declining revenues, persistent losses, and dependence on external funding. While the balance sheet shows some resilience with cash reserves and moderate leverage, the lack of profitability and cash flow growth indicates the company must address operational inefficiencies to achieve sustainable growth.Income Statement
Allogene Therapeutics has struggled to generate revenue, with a sharp decline from $38.5M in 2021 to negligible amounts in 2023 and 2024. Consistently negative EBIT and net income reflect ongoing operational challenges. The lack of revenue growth and persistent losses highlight significant financial hurdles.20
Very Negative
Balance Sheet
The company maintains a relatively low debt-to-equity ratio, indicating moderate leverage. However, a declining equity base from $1.08B in 2020 to $422M in 2024 signals potential financial strain. The substantial cash reserves provide a buffer, but the shrinking equity ratio raises concerns about long-term stability.35
Negative
Cash Flow
Negative operating and free cash flows indicate poor cash generation from operations. While financing activities have bolstered cash levels, the reliance on external funding to sustain operations could pose risks. The absence of positive cash flow growth further underscores operational inefficiencies.30
Negative
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| -22.00K | 22.00K | 95.00K | 156.00K | 114.09M | 0.00 | Gross Profit |
| -3.23M | -192.28M | 95.00K | -256.23M | -106.09M | -11.54M | EBIT |
| -268.89M | -273.20M | -327.74M | -335.54M | -180.19M | -258.24M | EBITDA |
| -238.45M | -243.33M | -313.07M | -321.24M | -169.74M | -250.81M | Net Income Common Stockholders |
| -252.32M | -257.59M | -327.26M | -340.41M | -182.05M | -250.22M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 280.04M | 292.48M | 448.70M | 576.47M | 809.48M | 1.03B | Total Assets |
| 507.98M | 548.71M | 642.84M | 817.08M | 1.04B | 1.23B | Total Debt |
| 81.29M | 90.76M | 95.12M | 95.12M | 69.93M | 53.78M | Net Debt |
| 38.84M | 15.54M | 11.97M | -481.35M | -739.55M | -978.34M | Total Liabilities |
| 122.59M | 126.53M | 130.60M | 151.21M | 122.23M | 148.21M | Stockholders Equity |
| 385.39M | 422.18M | 512.23M | 665.87M | 916.41M | 1.08B |
| Cash Flow | Free Cash Flow | ||||
| -198.12M | -200.99M | -239.25M | -225.71M | -206.26M | -181.05M | Operating Cash Flow |
| -197.33M | -200.30M | -237.73M | -220.52M | -184.81M | -115.09M | Investing Cash Flow |
| 59.73M | 75.69M | 163.29M | 106.16M | 163.66M | -505.12M | Financing Cash Flow |
| 129.01M | 116.67M | 95.69M | 2.95M | 11.96M | 633.59M |
Allogene Therapeutics Technical Analysis
Neutral
1.34
Price Trends
1.34
Positive
1.58
Negative
2.02
Negative
Market Momentum
0.03
Negative
53.89
Neutral
49.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLO, the sentiment is Neutral. The current price of 1.34 is above the 20-day moving average (MA) of 1.26, below the 50-day MA of 1.34, and below the 200-day MA of 2.02, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.89 is Neutral, neither overbought nor oversold. The STOCH value of 49.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALLO.
Allogene Therapeutics Risk Analysis
Allogene Therapeutics disclosed 76 risk factors in its most recent earnings report. Allogene Therapeutics reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allogene Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
60 Neutral | $333.26M | ― | -41.31% | ― | ― | -7.93% | |
54 Neutral | $5.34B | 3.27 | -45.10% | 3.30% | 16.80% | 0.02% | |
53 Neutral | $564.22M | ― | -49.97% | ― | -14.16% | 25.80% | |
43 Neutral | $299.66M | ― | -59.60% | ― | -100.00% | 31.43% | |
42 Neutral | $432.15M | ― | -115.47% | ― | ― | ― | |
38 Underperform | $273.19M | ― | -66.13% | ― | ― | 43.21% | |
33 Underperform | $584.19M | ― | -71.44% | ― | ― | 19.94% |
* Healthcare Sector Average
Performance Comparison
ALLO
Allogene Therapeutics
1.37
-0.86
-38.57%
AUTL
Autolus Therapeutics
2.05
-1.85
-47.44%
ANNX
Annexon Biosciences
2.44
-2.63
-51.87%
CMPX
Compass Therapeutics
2.37
1.25
111.61%
SANA
Sana Biotechnology
2.52
-3.16
-55.63%
ZBIO
Zenas BioPharma, Inc.
9.97
-8.00
-44.52%
Allogene Therapeutics Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Allogene Therapeutics Announces Executive Departure and Transition
Neutral
Jan 29, 2025
On January 23, 2025, Allogene Therapeutics announced that Timothy Moore would be leaving the company on February 28, 2025, with eligibility for certain severance benefits. The company plans to enter a consulting agreement with Mr. Moore, which could impact their operational strategy and stakeholder relations.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.