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Positive Outlook on Allogene Therapeutics Amid ALPHA3 Trial Delays and Market Expansion Potential

William Blair analyst Sami Corwin has reiterated their bullish stance on ALLO stock, giving a Buy rating yesterday.

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Sami Corwin has given his Buy rating due to a combination of factors influencing Allogene Therapeutics. Despite the delay in the ALPHA3 trial results, Corwin views this as a typical challenge faced by pioneers in new treatment paradigms. The increase in patient screening activities provides reassurance about the company’s progress, suggesting that the delay may not significantly impact investor sentiment.
Moreover, Corwin remains optimistic about the potential of cema-cel to outperform existing CD19 CAR-T therapies and expand its market reach. The extension of Allogene’s cash runway is seen as a positive development, especially in a challenging economic environment, as it positions the company to reach a significant valuation milestone. Overall, these factors contribute to a positive outlook on the company’s future performance.

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