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Allogene Therapeutics (ALLO)
:ALLO
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Allogene Therapeutics
(NASDAQ:ALLO)
44Neutral
Positive Factors
Efficacy Data
Updated Phase I ALPHA/ALPHA 2 Data Supports Efficacy Profile of Cema-Cel.
Product Innovation
Allogene's ALLO-329 avoids halting immunosuppression for several weeks before T-cell apheresis, because ALLO-329 is a ready-to-use product.
Negative Factors
Program Discontinuation
The discontinuation of the CLL program is seen as unfortunate due to slower-than-anticipated trial enrollment and the emergence of new alternative treatment options.
Allogene Therapeutics (ALLO) vs. S&P 500 (SPY)
Market Cap
$425.63M
Dividend YieldN/A
Average Volume (3M)7.87M
Price to Earnings (P/E)―
Beta (1Y)1.99
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees233
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.56
Shares Outstanding209,672,090
10 Day Avg. Volume3,355,012
30 Day Avg. Volume7,865,249
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)4480.36
Price to Cash Flow (P/CF)-2.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$11.50Price Target Upside466.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Allogene Therapeutics Business Overview & Revenue Model
Company DescriptionAllogene Therapeutics, Inc. operates as a clinical stage immuno-oncology company pioneering the development and commercialization of genetically engineered allogeneic T cell therapies for the treatment of cancer. The firm develops a pipeline of off-the-shelf T cell product candidates that are designed to target and kill cancer cells. Its engineered T cells are allogeneic, which are derived from healthy donors for intended use in any patient. The company was founded by Arie S. Belldegrun, David D. Chang, and Joshua A. Kazam in November 2017 and is headquartered in South San Francisco, CA.
How the Company Makes MoneyAllogene Therapeutics generates revenue primarily through the development and eventual commercialization of its allogeneic CAR T cell therapies. The company aims to advance its pipeline of AlloCAR T candidates through clinical trials, seeking regulatory approval, and, if successful, bringing these therapies to market. Additionally, Allogene establishes strategic partnerships and collaborations with other pharmaceutical and biotechnology companies to co-develop products, which may include upfront payments, milestone payments, and royalties on sales. These partnerships are significant factors in its revenue model as they provide financial resources and shared expertise to accelerate the development of its therapies.
Allogene Therapeutics Financial Statement Overview
Summary
Allogene Therapeutics faces significant financial hurdles, with a persistent revenue decline and substantial losses impacting profitability. Despite a solid equity base, the operational cash burn remains a concern, necessitating careful cash management. The company's financial strategy should focus on improving revenue generation and operational efficiency to enhance long-term viability.Income Statement
Allogene Therapeutics has faced significant challenges in generating revenue growth, with a declining trend in total revenue from previous periods. The gross profit margin is negative, indicating that the cost of goods sold exceeds revenue. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges and significant losses. The net profit margin is deeply negative, highlighting sustained unprofitability.35
Negative
Balance Sheet
The company's debt-to-equity ratio is modest, suggesting a conservative approach to leverage. However, the return on equity (ROE) is negative due to continued net losses. The equity ratio is strong, indicating a solid capital base relative to total assets, which can provide some stability despite operational losses.45
Neutral
Cash Flow
Cash flow analysis reveals negative operating and free cash flows, indicating ongoing cash burn. The free cash flow to net income ratio is concerning due to large negative values, reflecting operational inefficiencies. However, the company has managed to generate cash from financing activities, which may support short-term liquidity needs.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 43.00K | 95.00K | 243.00K | 38.49M | 0.00 | 0.00 | Gross Profit |
| -61.82M | -242.82M | -16.48M | 25.42M | -11.54M | -5.03M | EBIT |
| -279.58M | -327.74M | -335.45M | -255.79M | -258.24M | -202.01M | EBITDA |
| -260.19M | -300.29M | -321.24M | -169.74M | -250.81M | -179.90M | Net Income Common Stockholders |
| -283.43M | -327.26M | -329.81M | -244.84M | -233.47M | -184.59M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 448.70M | 448.70M | 576.47M | 809.48M | 1.03B | 588.86M | Total Assets |
| 642.84M | 642.84M | 817.08M | 1.04B | 1.23B | 717.80M | Total Debt |
| 95.12M | 95.12M | 95.12M | 69.93M | 53.78M | 51.35M | Net Debt |
| 11.97M | 11.97M | -481.35M | -739.55M | -978.34M | -537.51M | Total Liabilities |
| 130.60M | 130.60M | 151.21M | 122.23M | 148.21M | 88.78M | Stockholders Equity |
| 512.23M | 512.23M | 665.87M | 916.41M | 1.08B | 629.02M |
| Cash Flow | Free Cash Flow | ||||
| -217.93M | -239.25M | -225.71M | -206.26M | -181.05M | -188.14M | Operating Cash Flow |
| -217.31M | -237.73M | -220.52M | -184.81M | -115.09M | -137.35M | Investing Cash Flow |
| 88.22M | 163.29M | 106.16M | 163.66M | -505.12M | 164.08M | Financing Cash Flow |
| 111.09M | 95.69M | 2.95M | 11.96M | 633.59M | 58.96M |
Allogene Therapeutics Technical Analysis
Neutral
2.03
Price Trends
1.96
Positive
2.20
Negative
2.40
Negative
Market Momentum
0.03
Negative
52.54
Neutral
56.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLO, the sentiment is Neutral. The current price of 2.03 is below the 20-day moving average (MA) of 2.04, above the 50-day MA of 1.96, and below the 200-day MA of 2.40, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 56.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALLO.
Allogene Therapeutics Risk Analysis
Allogene Therapeutics disclosed 73 risk factors in its most recent earnings report. Allogene Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Allogene Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% | |
48 Neutral | $121.98M | ― | -98.10% | ― | -58.64% | -40.05% | |
46 Neutral | $3.63B | ― | -19.20% | ― | -89.95% | -123.71% | |
44 Neutral | $425.63M | ― | -54.15% | ― | ― | ― | |
42 Neutral | $38.57M | ― | -270.20% | ― | 144.50% | -141.91% | |
42 Neutral | $110.00M | ― | -54.21% | ― | -78.55% | -0.92% | |
39 Underperform | $962.71M | ― | -54.00% | ― | 59.55% | 3.09% |
* Healthcare Sector Average
Performance Comparison
ALLO
Allogene Therapeutics
2.06
-2.82
-57.79%
BLUE
Bluebird Bio
3.86
-23.94
-86.12%
FATE
Fate Therapeutics
1.01
-6.63
-86.78%
EDIT
Editas Medicine
1.51
-7.08
-82.42%
NTLA
Intellia Therapeutics
9.62
-19.05
-66.45%
CRSP
Crispr Therapeutics AG
43.49
-31.29
-41.84%
Allogene Therapeutics Earnings Call Summary
Earnings Call Date: Nov 7, 2024 | % Change Since: -36.36% | Next Earnings Date: Mar 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant advancements in clinical trials for both cancer and autoimmune diseases, showing promising efficacy and strong financial positioning. However, concerns about safety profiles and delays in regimen finalization pose challenges.Highlights
Progress in ALPHA3 Trial for Large B-Cell Lymphoma
The pivotal Phase II ALPHA3 trial of cema-cel for large B-cell lymphoma is advancing, with 27 of the planned 50 sites activated, including 60% at community centers.
Breakthrough in Solid Tumor Treatment
ALLO-316 showed a confirmed response rate of 33% and best overall response rate of 50% in the Phase I TRAVERSE trial for renal cell carcinoma, earning RMAT designation from the FDA.
Innovative Dual CAR-T Approach for Autoimmune Diseases
ALLO-329, the first dual CD19 CD70 CAR, aims to reduce or eliminate the need for lymphodepleting chemotherapy, with IND filing expected in Q1 2025.
Strong Financial Position
Cash balance of $403.4 million as of Q3 2024, with cash runway extending into the second half of 2026.
Lowlights
Safety Concerns with ALLO-316
There were multiple dose-limiting toxicities (DLTs) at dose level 2 in the ALLO-316 trial, including a Grade 5 adverse event.
Challenges in Lymphodepletion Regimen for Cema-cel
Finalization of the lymphodepletion regimen for the ALPHA3 trial is delayed until mid-2025.
Net Loss in Q3 2024
Reported net loss of $66.3 million or $0.32 per share for Q3 2024.
Company Guidance
During the third quarter of 2024, Allogene Therapeutics provided robust guidance on its ongoing and future clinical endeavors across oncology and autoimmune diseases. The company highlighted the pivotal Phase II ALPHA3 trial for cema-cel in large B-cell lymphoma, aiming to establish the first CAR-T therapy in first-line treatment, with 27 of the planned 50 sites already activated. In solid tumors, the ALLO-316 program for renal cell carcinoma showed a confirmed response rate of 33% and a best overall response rate of 50%, earning RMAT designation from the FDA. The pipeline also includes ALLO-329, targeting autoimmune diseases with Phase I initiation expected in Q1 2025 and proof-of-concept data by year-end, leveraging proprietary Dagger technology to potentially eliminate lymphodepletion. Financially, Allogene ended Q3 with $403.4 million in cash, projecting a cash runway into the second half of 2026, while anticipating a full-year cash burn of approximately $200 million.Allogene Therapeutics Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Allogene Therapeutics Announces Executive Departure and Transition
Neutral
Jan 29, 2025
On January 23, 2025, Allogene Therapeutics announced that Timothy Moore would be leaving the company on February 28, 2025, with eligibility for certain severance benefits. The company plans to enter a consulting agreement with Mr. Moore, which could impact their operational strategy and stakeholder relations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.