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Allogene's (ALLO) Q3 Loss Narrower Than Expected, Sales Miss

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Allogene Therapeutics, Inc. (ALLO - Free Report) incurred a loss of 37 cents per share in third-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago quarter, the company reported a loss of 58 cents.

ALLO recorded revenues of $0.04 million during the quarter, missing the Zacks Consensus Estimate of $0.05 million. Revenues were down 12% year over year.

Quarter in Detail

Research & development (R&D) expenses were $46.0 million, down 28% from the year-ago quarter’s level.

General and administrative (G&A) expenses declined 10.0% year over year to $17.0 million.

Shares of Allogene have plunged 52.8% in the year-to-date period compared with the industry’s 23.5% decline.

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Allogene had $497.7 million of cash, cash equivalents and investments as of Sep 30, 2023, compared with $544.5 million as of Jun 30, 2023.

Maintains 2023 Guidance

Allogene anticipates operating expenses for the full year to be approximately $340 million, which includes non-cash stock compensation expenses of around $80 million.

Cash burn for 2023 is expected to be approximately $230 million. Based on these projections, management expects the existing cash runway to be sufficient to fund operations into second-half 2025.

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.

ALLO-501 is being evaluated in a phase I ALPHA study for r/r non-Hodgkin lymphoma (NHL) subtypes. A second-generation version of ALLO-501, ALLO-501A, is also being developed for NHL in the phase I/II ALPHA2 study.

Management is currently enrolling study participants in the phase II portion of the ALPHA2 study, which evaluates ALLO-501A in patients with relapsed/refractory (r/r) large B cell lymphoma (LBCL). The study is expected to complete enrolment in the first half of 2024, and a data readout is expected by 2024-end.

ALLO-316, the company’s first CAR T candidate for solid tumors, is being evaluated in the phase I TRAVERSE study in adults with advanced or metastatic renal cell carcinoma (ccRCC). Dose escalation in the TRAVERSE study is expected to be completed by early 2024. Allogene intends to target an academic forum in early 2024 to provide an update on this study.

 

Zacks Rank & Other Stocks to Consider

Allogene currently has a Zacks Rank #2 (Buy). Some other top-ranked stocks in the overall healthcare sector include Acadia Pharmaceuticals (ACAD - Free Report) , Alkermes (ALKS - Free Report) and Puma Biotechnology (PBYI - Free Report) . While Puma Biotechnology sports a Zacks Rank #1 (Strong Buy), Acadia and Alkermes carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Puma Biotechnology’s earnings estimates for 2024 have increased from 55 cents to 56 cents per share in the past 30 days. Year to date, Puma Biotechnology’s stock has lost 41.1%.

Puma Biotechnology beat earnings estimates in three of the last four quarters while missing the mark on one occasion. On average, the company’s earnings witnessed a negative earnings surprise of 95.94%. In the last reported quarter, PBYI delivered an earnings surprise of 42.86%.

In the past 30 days, estimates for Acadia’s 2023 loss per share have narrowed from 41 cents to 37 cents. During the same period, the earnings estimates per share for 2024 have risen from 60 cents to 68 cents. Shares of ACAD are up 44.4% in the year-to-date period.

Earnings of Acadia beat estimates in two of the last four quarters while missing the mark on the other two occasions, witnessing an average earnings surprise of 20.33%. In the last reported quarter, Acadia’s earnings beat estimates by 108.33%.

In the past 30 days, the estimate for Alkermes’ 2023 and 2024 EPS have increased from $1.61 to $1.63 and $1.93 to $2.14, respectively. Shares of ALKS are down 6.1% in the year-to-date period.

Earnings of Alkermes beat estimates in each of the last four quarters, witnessing an average earnings surprise of 93.34%. Alkermes’ earnings beat estimates by 45.45%.

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