JPMorgan analyst Brian Cheng downgraded Allogene Therapeutics (ALLO) to Neutral from Overweight with no price target after the company reported a fatal event in cemacabtagene ansegedleucel, or cema-cel’s, pivotal front-line consolidation large B-cell lymphoma ALPHA 3 study. The announcement “came as a surprise,” says the analyst, who finds it “difficult to remain confident in cema-cel” following a recent series of setbacks. After updating the firm’s model to reflect today’s announcement, the firm is lowering penetration assumptions and probability of success for cema-cel in first-line consolidation LBCL, the analyst noted.
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