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Allogene (ALLO) Posts Narrower Than Expected Loss in Q2
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Allogene Therapeutics, Inc. (ALLO - Free Report) incurred an adjusted loss (excluding impairment of long-lived asset) of 32 cents per share in second-quarter 2024, narrower than the Zacks Consensus Estimate of a loss of 35 cents.
Inclusive of impairment charges, the company posted a loss of 35 cents in the second quarter. In the year-ago period, the company reported a loss of 54 cents. There was no impairment charge recorded in the year-ago period.
ALLO did not generate any revenues during the quarter. The Zacks Consensus Estimate for sales stood at $0.04 million. In the year-ago period, management recorded revenues worth $0.02 million.
Year to date, shares of Allogene have lost 23.1% compared with the industry’s 5.9% fall.
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Quarter in Detail
Research & development (R&D) expenses were $50.4 million, down 19% from the year-ago quarter’s level.
General and administrative (G&A) expenses declined 13% year over year to $16.1 million.
Allogene had $444.6 million of cash, cash equivalents and investments as of Jun 30, 2024, compared with $397.3 million as of Mar 31, 2024. This rise in cash balance is due to the inflow of funds from a secondary issue of common stock worth gross proceeds of around $110 million floated in May 2024. Management claims that the new inflow will help Allogene extend its cash runway into second-half 2026.
2024 Guidance
Allogene reiterated its previously-issued guidance for 2024. It anticipates incurring operating expenses to be around $300 million, including estimated non-cash stock-based compensation expenses of nearly $60 million. Cash burn for the year is expected to be nearly $200 million.
Pipeline Update
In June, Allogene initiated the pivotal phase II ALPHA3 study evaluating cema-cel as a potential first-line treatment for newly-diagnosed and treated large B cell lymphoma (LBCL) patients who are likely to relapse and need further therapy. While management expects a data readout by 2026-end, it expects to make a regulatory submission in 2027.
This new study initiation is a part of the major strategic reprioritization announced by the company in January to shift its focus on cema-cel from being a third-line therapy in LBCL patients to being a frontline therapy. Through this move, management intends to cater to a wider and more lucrative target market.
During the first 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 early 2025.
Allogene is also planning to explore the potential of CRISPR-based allogenic CAR-T cell therapies in autoimmune diseases. In this regard, management plans to file an investigational new drug (IND) application for a new candidate ALLO-329 by first-quarter 2025. It plans to explore the potential of this candidate in lupus/systemic lupus erythematosus (SLE) indication and expects to have proof-of-concept by 2025-end.
In the past 60 days, estimates for Entrada Therapeutics’ 2024 loss per share have improved from 14 cents to 13 cents. Estimates for 2025 have improved from $3.44 to $3.21 during the same period. Year to date, shares of Entrada Therapeutics have lost 8.5%.
Earnings of Entrada Therapeutics beat estimates in two of the last four quarters while missing the mark on two other occasions. Entrada delivered a four-quarter average earnings surprise of 42.18%.
In the past 60 days, estimates for Fulcrum Therapeutics’ 2024 loss per share have improved from $1.24 to 48 cents. Estimates for 2025 have improved from $1.71 to $1.51 during the same period. Year to date, shares of Fulcrum Therapeutics have risen 22.8%.
Earnings of Fulcrum Therapeutics beat estimates in each of the last four quarters. Fulcrum delivered a four-quarter average earnings surprise of 393.18%.
In the past 60 days, the loss per share estimates for Immatics have improved from $1.26 to $1.25 for 2024. During the same period, loss estimates for 2025 have improved from $1.49 to $1.41. Year to date, shares of IMTX have risen 5.0%.
Earnings of Immatics beat estimates in three of the last four quarters while meeting the mark on one occasion, delivering a four-quarter average earnings surprise of 32.57%.
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Allogene (ALLO) Posts Narrower Than Expected Loss in Q2
Allogene Therapeutics, Inc. (ALLO - Free Report) incurred an adjusted loss (excluding impairment of long-lived asset) of 32 cents per share in second-quarter 2024, narrower than the Zacks Consensus Estimate of a loss of 35 cents.
Inclusive of impairment charges, the company posted a loss of 35 cents in the second quarter. In the year-ago period, the company reported a loss of 54 cents. There was no impairment charge recorded in the year-ago period.
ALLO did not generate any revenues during the quarter. The Zacks Consensus Estimate for sales stood at $0.04 million. In the year-ago period, management recorded revenues worth $0.02 million.
Year to date, shares of Allogene have lost 23.1% compared with the industry’s 5.9% fall.
Quarter in Detail
Research & development (R&D) expenses were $50.4 million, down 19% from the year-ago quarter’s level.
General and administrative (G&A) expenses declined 13% year over year to $16.1 million.
Allogene had $444.6 million of cash, cash equivalents and investments as of Jun 30, 2024, compared with $397.3 million as of Mar 31, 2024. This rise in cash balance is due to the inflow of funds from a secondary issue of common stock worth gross proceeds of around $110 million floated in May 2024. Management claims that the new inflow will help Allogene extend its cash runway into second-half 2026.
2024 Guidance
Allogene reiterated its previously-issued guidance for 2024. It anticipates incurring operating expenses to be around $300 million, including estimated non-cash stock-based compensation expenses of nearly $60 million. Cash burn for the year is expected to be nearly $200 million.
Pipeline Update
In June, Allogene initiated the pivotal phase II ALPHA3 study evaluating cema-cel as a potential first-line treatment for newly-diagnosed and treated large B cell lymphoma (LBCL) patients who are likely to relapse and need further therapy. While management expects a data readout by 2026-end, it expects to make a regulatory submission in 2027.
This new study initiation is a part of the major strategic reprioritization announced by the company in January to shift its focus on cema-cel from being a third-line therapy in LBCL patients to being a frontline therapy. Through this move, management intends to cater to a wider and more lucrative target market.
During the first 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 early 2025.
Allogene is also planning to explore the potential of CRISPR-based allogenic CAR-T cell therapies in autoimmune diseases. In this regard, management plans to file an investigational new drug (IND) application for a new candidate ALLO-329 by first-quarter 2025. It plans to explore the potential of this candidate in lupus/systemic lupus erythematosus (SLE) indication and expects to have proof-of-concept by 2025-end.
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 Entrada Therapeutics (TRDA - Free Report) , Fulcrum Therapeutics (FULC - Free Report) Immatics (IMTX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, estimates for Entrada Therapeutics’ 2024 loss per share have improved from 14 cents to 13 cents. Estimates for 2025 have improved from $3.44 to $3.21 during the same period. Year to date, shares of Entrada Therapeutics have lost 8.5%.
Earnings of Entrada Therapeutics beat estimates in two of the last four quarters while missing the mark on two other occasions. Entrada delivered a four-quarter average earnings surprise of 42.18%.
In the past 60 days, estimates for Fulcrum Therapeutics’ 2024 loss per share have improved from $1.24 to 48 cents. Estimates for 2025 have improved from $1.71 to $1.51 during the same period. Year to date, shares of Fulcrum Therapeutics have risen 22.8%.
Earnings of Fulcrum Therapeutics beat estimates in each of the last four quarters. Fulcrum delivered a four-quarter average earnings surprise of 393.18%.
In the past 60 days, the loss per share estimates for Immatics have improved from $1.26 to $1.25 for 2024. During the same period, loss estimates for 2025 have improved from $1.49 to $1.41. Year to date, shares of IMTX have risen 5.0%.
Earnings of Immatics beat estimates in three of the last four quarters while meeting the mark on one occasion, delivering a four-quarter average earnings surprise of 32.57%.