We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Allogene (ALLO) Q1 Earnings in Line With Estimates, Sales Lag
Read MoreHide Full Article
Allogene Therapeutics, Inc. (ALLO - Free Report) registered a loss of 38 cents per share in first-quarter 2024, in line with the Zacks Consensus Estimate. In the year-ago quarter, the company reported a loss of 69 cents.
ALLO recorded revenues of $0.02 million during the quarter, missing the Zacks Consensus Estimate of $0.04 million. Revenues were down 27% year over year.
Quarter in Detail
Research & development (R&D) expenses were $52.3 million, down 35% from the year-ago quarter’s level.
General and administrative (G&A) expenses declined 9% year over year to $17.3 million.
Allogenehad $397.3 million of cash, cash equivalents and investments as of Mar 31, 2024, compared with $448.7 million as of Dec 31, 2023.
In a separate press release, management announced that it is floating a secondary issue of nearly 38 million shares of its common stock to the public at an issue price of $2.90 per share, intending to raise around $110 million in gross proceeds. The issue will include participation from venture capital and investment management companies and the company’s board of directors and executive management. This issue is expected to close on May 16.
Shares of Allogene rose 6% in after-market trading on May 13, likely due to the inflow of funds to the company. With no marketed products in its portfolio, the company is entirely dependent on its pipeline development for growth. An influx of cash will not only help the company fund its current operations but also extend its existing cash runway. Management claims that the new inflow will help Allogene extend its cash runway into third-quarter 2026.
Year to date, the stock has lost 9.7% compared with the industry’s 6.6% fall.
Image Source: Zacks Investment Research
2024 Guidance
Allogene provided an update to its prior guidance. It now anticipates incurring operating expenses to be around $300 million (previously $280 million), including estimated non-cash stock-based compensation expenses of nearly $60 million.
Cash burn for 2024 is expected to be nearly $200 million, an increase of $10 million to the company’s prior guidance due to the timing impact of its revised milestone obligations to Servier.
Pipeline Update
In January, Allogene made major changes to its pipeline when it announced its business plans for 2024 and beyond. As part of its business update, management announced that it is deprioritizing two pivotal mid-stage studies, namely ALPHA2 and EXPAND, evaluating its CAR-T cell therapy candidate ALLO-501A, now known as cemacabtagene ansegedleucel (cema-cel), in third-line large B cell lymphoma (LBCL).
Allogene will focus on developing cema-cel as a frontline treatment for LBCL patients. In this regard, management initiated start-up activities for the phase II ALPHA3 study evaluating cema-cel as a potential first-line treatment for newly diagnosed and treated LBCL patients who are likely to relapse and need further therapy. The study is expected to begin in mid-2024. While management expects a data readout in 2026, it expects to make a regulatory submission in 2027.
Alongside the earnings release, Allogene announced that it obtained the development and commercialization oncology rights for its CD19-directed allogeneic cell therapy products (which includes cema-cel) in Europe from Servier.Management claims that the expanded rights substantially increase the company’s multibillion-dollar revenue potential by more than 50%.
Earlier in 2022, Servier had communicated its intent to terminate the collaboration with Allogene for the CD19 program. Following this decision, Allogene gained the right to exercise its option for the ex-U.S. rights of the CD19 program. Management can also obtain the rights in Japan and China in the future at no additional cost, subject to the company demonstrating the resources to pursue those markets.
During the quarter, management started a new cohort in the phase I ALPHA2 study evaluating cema-cel in patients with chronic lymphocytic leukemia (CLL) based on investigator enthusiasm. It intends to report initial data from this new cohort by 2024-end and start a pivotal mid-stage study the following year.
Allogene is also planning to explore the potential of allogenic CAR-T cell therapies in autoimmune diseases. It intends to start an early-stage study with a new candidate, ALLO-329, in lupus/systemic lupus erythematosus (SLE) indication next year. The candidate has been designed to reduce or eliminate the need for standard chemotherapy.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 earnings per share (EPS) have risen from $4.40 to $4.44. During the same period, EPS estimates for 2025 have improved from $5.01 to $5.04. Year to date, shares of ANIP have rallied 22.1%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters. ANI delivered a four-quarter average earnings surprise of 109.06%.
In the past 60 days, estimates for Ligand Pharmaceuticals’ 2024 EPS have risen from $4.42 to $4.56. During the same period, EPS estimates for 2025 have improved from $5.11 to $5.27. Year to date, LGND’s shares have risen 17.7%.
Earnings of Ligand Pharmaceuticals beat estimates in each of the last four quarters. Ligand delivered a four-quarter average earnings surprise of 56.02%.
In the past 60 days, estimates for United Therapeutics’ 2024 EPS have improved from $23.15 to $24.20. During the same period, EPS estimates for 2025 have risen from $24.12 to $26.74. Year to date, shares of UTHR have inched up 20.2%.
Earnings of United Therapeutics beat estimates in each of the last four quarters. UTHR delivered a four-quarter average earnings surprise of 12.41%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Allogene (ALLO) Q1 Earnings in Line With Estimates, Sales Lag
Allogene Therapeutics, Inc. (ALLO - Free Report) registered a loss of 38 cents per share in first-quarter 2024, in line with the Zacks Consensus Estimate. In the year-ago quarter, the company reported a loss of 69 cents.
ALLO recorded revenues of $0.02 million during the quarter, missing the Zacks Consensus Estimate of $0.04 million. Revenues were down 27% year over year.
Quarter in Detail
Research & development (R&D) expenses were $52.3 million, down 35% from the year-ago quarter’s level.
General and administrative (G&A) expenses declined 9% year over year to $17.3 million.
Allogenehad $397.3 million of cash, cash equivalents and investments as of Mar 31, 2024, compared with $448.7 million as of Dec 31, 2023.
In a separate press release, management announced that it is floating a secondary issue of nearly 38 million shares of its common stock to the public at an issue price of $2.90 per share, intending to raise around $110 million in gross proceeds. The issue will include participation from venture capital and investment management companies and the company’s board of directors and executive management. This issue is expected to close on May 16.
Shares of Allogene rose 6% in after-market trading on May 13, likely due to the inflow of funds to the company. With no marketed products in its portfolio, the company is entirely dependent on its pipeline development for growth. An influx of cash will not only help the company fund its current operations but also extend its existing cash runway. Management claims that the new inflow will help Allogene extend its cash runway into third-quarter 2026.
Year to date, the stock has lost 9.7% compared with the industry’s 6.6% fall.
Image Source: Zacks Investment Research
2024 Guidance
Allogene provided an update to its prior guidance. It now anticipates incurring operating expenses to be around $300 million (previously $280 million), including estimated non-cash stock-based compensation expenses of nearly $60 million.
Cash burn for 2024 is expected to be nearly $200 million, an increase of $10 million to the company’s prior guidance due to the timing impact of its revised milestone obligations to Servier.
Pipeline Update
In January, Allogene made major changes to its pipeline when it announced its business plans for 2024 and beyond. As part of its business update, management announced that it is deprioritizing two pivotal mid-stage studies, namely ALPHA2 and EXPAND, evaluating its CAR-T cell therapy candidate ALLO-501A, now known as cemacabtagene ansegedleucel (cema-cel), in third-line large B cell lymphoma (LBCL).
Allogene will focus on developing cema-cel as a frontline treatment for LBCL patients. In this regard, management initiated start-up activities for the phase II ALPHA3 study evaluating cema-cel as a potential first-line treatment for newly diagnosed and treated LBCL patients who are likely to relapse and need further therapy. The study is expected to begin in mid-2024. While management expects a data readout in 2026, it expects to make a regulatory submission in 2027.
Alongside the earnings release, Allogene announced that it obtained the development and commercialization oncology rights for its CD19-directed allogeneic cell therapy products (which includes cema-cel) in Europe from Servier.Management claims that the expanded rights substantially increase the company’s multibillion-dollar revenue potential by more than 50%.
Earlier in 2022, Servier had communicated its intent to terminate the collaboration with Allogene for the CD19 program. Following this decision, Allogene gained the right to exercise its option for the ex-U.S. rights of the CD19 program. Management can also obtain the rights in Japan and China in the future at no additional cost, subject to the company demonstrating the resources to pursue those markets.
During the quarter, management started a new cohort in the phase I ALPHA2 study evaluating cema-cel in patients with chronic lymphocytic leukemia (CLL) based on investigator enthusiasm. It intends to report initial data from this new cohort by 2024-end and start a pivotal mid-stage study the following year.
Allogene is also planning to explore the potential of allogenic CAR-T cell therapies in autoimmune diseases. It intends to start an early-stage study with a new candidate, ALLO-329, in lupus/systemic lupus erythematosus (SLE) indication next year. The candidate has been designed to reduce or eliminate the need for standard chemotherapy.
Allogene Therapeutics, Inc. Price
Allogene Therapeutics, Inc. price | Allogene Therapeutics, Inc. Quote
Zacks Rank & Key Picks
Allogene currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the overall healthcare sector include ANI Pharmaceuticals (ANIP - Free Report) , Ligand Pharmaceuticals and United Therapeutics (UTHR - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for ANI Pharmaceuticals’ 2024 earnings per share (EPS) have risen from $4.40 to $4.44. During the same period, EPS estimates for 2025 have improved from $5.01 to $5.04. Year to date, shares of ANIP have rallied 22.1%.
Earnings of ANI Pharmaceuticals beat estimates in each of the last four quarters. ANI delivered a four-quarter average earnings surprise of 109.06%.
In the past 60 days, estimates for Ligand Pharmaceuticals’ 2024 EPS have risen from $4.42 to $4.56. During the same period, EPS estimates for 2025 have improved from $5.11 to $5.27. Year to date, LGND’s shares have risen 17.7%.
Earnings of Ligand Pharmaceuticals beat estimates in each of the last four quarters. Ligand delivered a four-quarter average earnings surprise of 56.02%.
In the past 60 days, estimates for United Therapeutics’ 2024 EPS have improved from $23.15 to $24.20. During the same period, EPS estimates for 2025 have risen from $24.12 to $26.74. Year to date, shares of UTHR have inched up 20.2%.
Earnings of United Therapeutics beat estimates in each of the last four quarters. UTHR delivered a four-quarter average earnings surprise of 12.41%.