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Allogene (ALLO) Reports Narrower-Than-Expected Loss in Q3

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Allogene Therapeutics, Inc. (ALLO - Free Report) incurred a loss of 58 cents per share in third-quarter 2022, narrower than the Zacks Consensus Estimate and our model estimate of a loss of 62 cents and 64 cents, respectively. In the year-ago quarter, the company reported a loss of 57 cents.

ALLO recorded revenues of $0.05 million during the quarter, missing the Zacks Consensus Estimate and our estimate of $0.09 million. Revenues were flat year over year.

Shares of Allogene have declined 31.9% in the year so far compared with the industry’s 21.2% fall.

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Quarter in Detail

Research & development (R&D) expenses were $63.6 million, up 8.4% from the year-ago quarter’s level.

General and administrative (G&A) expenses declined 0.5% year over year to $18.9 million.

Allogene had $637.3 million of cash, cash equivalents and investments as of Sep 30, 2022, compared with $686.1 million as of Jun 30, 2022.

2022 Guidance Updated

Allogene anticipates operating expenses for the full year to be slightly below the low end of its previously-provided guidance of $360 million-$390 million.

Cash burn for the full year is expected to be less than $250 million.

Pipeline Update

Allogene has six pipeline candidates in early-stage of clinical development, including five AlloCAR T cell product candidates, namely ALLO-501, ALLO-501A, ALLO-715, ALLO-605 and ALLO-316 and a monoclonal antibody (mAB) ALLO-647.

Allogene’s most advanced product candidates are ALLO-501 and ALLO-501A, designed to target CD19 protein expressed on the cell surface of B-cells. ALLO is evaluating ALLO-501 and ALLO-501A in two early-stage clinical studies across different oncology indications. The company will provide an update on the studies by year-end at an R&D Showcase scheduled at the end of this month.

The company will also provide an update on its BCMA program, especially the phase I UNIVERSAL study evaluating ALLO-715 in relapsed/refractory multiple myeloma (MM).

The updates will focus on longer-term follow up of participants previously treated in the CD19 and BCMA programs.

Allogene started the pivotal phase II portion of the ALPHA2 study in October 2022, which is evaluating ALLO-501A in patients with r/r LBCL. By initiating this phase II portion, ALLO expects the ALPHA2 study to be the industry’s first pivotal phase II study for an allogenic CAR T therapy.

The mAB candidate, ALLO-647, is part of the lymphodepletion regimen, which is likely to increase the potency of allogeneic CAR T cell therapies. Allogene is utilizing ALLO-647 in all its clinical studies and will start a separate registrational study (EXPAND study) to demonstrate the contribution of ALLO-647 to the standard fludarabine and cyclophosphamide lymphodepletion regimen. The EXPAND study intends to demonstrate the safety of ALLO-647 and its contribution to the overall benefit of the lymphodepletion regimen.

 

Zacks Rank & Stocks to Consider

Allogene currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the overall healthcare sector include Angion Biomedica , Gilead Sciences (GILD - Free Report) and Merck (MRK - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Estimates for Angion Biomedica’s 2022 loss per share have narrowed from $1.64 to $1.53 in the past 60 days. Angion’s loss estimates for 2023 have narrowed from $1.54 to $1.43 in the past 60 days. Shares of Angion Biomedica have plunged 66.6% in the year-to-date period.

Earnings of Angion Biomedica beat estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 62.85%. In the last reported quarter, ANGN delivered an earnings surprise of 34.78%.

Gilead’s stock has risen 7.3% this year so far. While Gilead’s earnings estimates for 2022 have risen from $6.61 to $6.94 per share in the past 60 days, estimates for 2023 have increased from $6.32 to $6.74 per share during the same period.

Gilead beat earnings estimates in three of the last four quarters and missed the mark on one occasion, the average surprise being 0.36%. In the last reported quarter, GILD delivered an earnings surprise of 31.94%.

Merck’s stock has risen 29.7% this year so far. While Merck’s earnings estimates for 2022 have risen from $7.36 to $7.38 per share in the past 60 days, estimates for 2023 have increased from $7.17 to $7.34 per share during the same period.

Merck beat earnings estimates in each of the last four quarters, delivering an average earnings surprise of 16.07%, on average. In the last reported quarter, Merck reported an earnings surprise of 10.78%.


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