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Allogene Therapeutics Inc (ALLO)
NASDAQ:ALLO
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Allogene Therapeutics
(NASDAQ:ALLO)
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Rating:46Neutral
Price Target:
$1.00
▼(-25.93% Downside)
Allogene Therapeutics' stock score is primarily impacted by its challenging financial performance, with persistent losses and reliance on external funding. While technical indicators show some short-term bullish momentum, the long-term trend remains bearish. The earnings call provided some positive developments in clinical trials and financial stability, but safety concerns and financial losses remain significant risks. The valuation is unattractive due to the negative P/E ratio and lack of dividend yield.
Positive Factors
Innovative Business Model
Allogene's focus on allogeneic T cell therapies represents a novel approach in cancer treatment, potentially offering scalable and off-the-shelf solutions that could transform the immunotherapy landscape.
Strong Cash Position
A robust cash position ensures operational stability and supports ongoing R&D efforts, providing a financial buffer to advance clinical trials and product development.
Clinical Trial Progress
Progress in clinical trials for key therapies indicates potential future product approvals, enhancing Allogene's market position and long-term growth prospects.
Negative Factors
Persistent Financial Losses
Ongoing financial losses highlight operational inefficiencies and the need for sustainable revenue generation, posing risks to long-term financial health.
Safety Concerns in Trials
Safety issues in clinical trials could delay product development and regulatory approval, impacting Allogene's ability to bring therapies to market.
Declining Revenue
A significant drop in revenue underscores challenges in commercializing products and achieving financial sustainability, affecting long-term growth potential.
Allogene Therapeutics (ALLO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$306.20M
Dividend YieldN/A
Average Volume (3M)2.99M
Price to Earnings (P/E)―
Beta (1Y)2.07
Revenue Growth-100.00%
EPS Growth30.91%
CountryUS
Employees226
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.23
Shares Outstanding221,881,030
10 Day Avg. Volume2,929,585
30 Day Avg. Volume2,989,882
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.20
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-4.85
Enterprise Value/Ebitda-0.26
Forecast
1Y Price Target
$9.40Price Target Upside596.30% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
Allogene Therapeutics Business Overview & Revenue Model
Company DescriptionAllogene Therapeutics, Inc., a clinical stage immuno-oncology company, develops and commercializes genetically engineered allogeneic T cell therapies for the treatment of cancer. It develops, manufactures, and commercializes UCART19, an allogeneic chimeric antigen receptor (CAR) T cell product candidate for the treatment of pediatric and adult patients with R/R CD19 positive B-cell ALL. The company also develops ALLO-501, an anti-CD19 allogeneic CAR T cell product candidate that is in Phase I clinical trial for the treatment of R/R non-Hodgkin lymphoma; and ALLO-501A, which is in Phase I/II clinical trial for the treatment R/R large B-cell lymphoma or transformed follicular lymphoma. In addition, it is developing ALLO-715, an allogeneic CAR T cell product candidate that is in a Phase I clinical trial for treating R/R multiple myeloma; ALLO-605, an allogeneic CAR T cell product candidate for the treatment of multiple myeloma; ALLO-647, an anti-CD52 monoclonal antibody; CD70 to treat renal cell cancer; ALLO-819, an allogeneic CAR T cell product candidates for the treatment of acute myeloid leukemia; and DLL3 for the treatment of small cell lung cancer and other aggressive neuroendocrine tumors. The company has license and collaboration agreements with Pfizer Inc.; Servier; Cellectis S.A.; and Notch Therapeutics Inc., as well as clinical trial collaboration agreement with SpringWorks Therapeutics, Inc. It also has a strategic collaboration agreement with The University of Texas MD Anderson Cancer Center for the preclinical and clinical investigation of allogeneic CAR T cell product candidates. The company was incorporated in 2017 and is headquartered in South San Francisco, California.
How the Company Makes MoneyAllogene Therapeutics generates revenue primarily through the development and commercialization of its allogeneic CAR T cell therapies. The company may achieve earnings through several key revenue streams, including licensing agreements, collaborations with larger pharmaceutical companies, and potential product sales once therapies receive regulatory approval. Significant partnerships with larger biopharmaceutical firms enhance its capabilities in research, development, and market access, contributing to its financial growth. Additionally, the company may receive milestone payments and royalties from its partners based on the progress of its product candidates.
Allogene Therapeutics Earnings Call Summary
Earnings Call Date:Aug 13, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 30, 2025
Earnings Call Sentiment Neutral
The call highlighted significant advancements in Allogene's clinical trials and financial stability, but was tempered by the report of a Grade 5 event in the ALPHA3 study, raising safety concerns. Overall, the positive developments and strategic advancements suggest a promising outlook, though tempered by specific safety challenges.Q2-2025 Updates
Positive Updates
Significant Progress Across Portfolio
Advancements in various programs, including cema-cel for large B-cell lymphoma, ALLO-316 for renal cell carcinoma, and ALLO-329 for autoimmune diseases, demonstrating Allogene's scientific and operational momentum.
ALPHA3 Study Design Improvements
Streamlined ALPHA3 study into a 2-arm randomized trial, with more than 50 sites activated in the U.S. and Canada, and additional international expansion underway.
ALLO-316 Advancements
Compelling Phase I data presented at ASCO 2025 for ALLO-316, with alignment on pivotal trial strategy with the FDA and active exploration of partnership opportunities.
Financial Position
As of June 30, 2025, $302.6 million in cash and investments with a cash runway extending into the second half of 2027.
Operational and Financial Discipline
R&D expenses were $40.2 million, G&A expenses $14.3 million, and a net loss of $50.9 million, with expectations of 2025 cash burn at approximately $150 million.
Negative Updates
Grade 5 Event in ALPHA3 Study
Reported a Grade 5 event related to ALLO-647 in the first-line maintenance setting for patients post R-CHOP, raising concerns about patient safety.
Financial Losses
Net loss for the second quarter was $50.9 million, highlighting ongoing financial challenges.
Company Guidance
In the second quarter 2025 conference call, Allogene Therapeutics outlined several key metrics and milestones for their ongoing and planned clinical trials. The company reported a cash balance of $302.6 million as of June 30, 2025, with a projected cash runway extending into the second half of 2027. Research and development expenses for the quarter were $40.2 million, including $2.6 million in non-cash stock-based compensation, while general and administrative expenses were $14.3 million, including $6.1 million in non-cash stock-based compensation. The net loss for the quarter was $50.9 million or $0.23 per share. Allogene anticipates a 2025 cash burn of approximately $150 million and full-year GAAP operating expenses of roughly $230 million, excluding potential business development impacts. The company also provided updates on clinical trials, including the ALPHA3 study for cema-cel, which is expected to have a futility analysis in the first half of 2026, and the RESOLUTION study for ALLO-329 in autoimmune diseases, with early clinical results anticipated in the first half of 2026.Allogene Therapeutics Financial Statement Overview
Summary
Allogene Therapeutics faces significant financial challenges, with declining revenues, persistent losses, and dependence on external funding. The balance sheet shows some resilience with cash reserves and moderate leverage, but the lack of profitability and cash flow growth indicates the company must address operational inefficiencies to achieve sustainable growth.Income Statement
Allogene Therapeutics has struggled to generate revenue, with a sharp decline from $38.5M in 2021 to negligible amounts in 2023 and 2024. Consistently negative EBIT and net income reflect ongoing operational challenges. The lack of revenue growth and persistent losses highlight significant financial hurdles.20
Very Negative
Balance Sheet
The company maintains a relatively low debt-to-equity ratio, indicating moderate leverage. However, a declining equity base from $1.08B in 2020 to $422M in 2024 signals potential financial strain. The substantial cash reserves provide a buffer, but the shrinking equity ratio raises concerns about long-term stability.35
Negative
Cash Flow
Negative operating and free cash flows indicate poor cash generation from operations. While financing activities have bolstered cash levels, the reliance on external funding to sustain operations could pose risks. The absence of positive cash flow growth further underscores operational inefficiencies.30
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 22.00K | 95.00K | 156.00K | 114.09M | 0.00 |
| Gross Profit | -12.64M | 22.00K | -242.82M | -14.14M | 103.64M | -11.54M |
| EBITDA | -232.47M | -243.33M | -313.07M | -321.24M | -169.74M | -238.68M |
| Net Income | -236.91M | -257.59M | -327.26M | -340.41M | -182.05M | -250.22M |
Balance Sheet | ||||||
| Total Assets | 470.59M | 548.71M | 642.84M | 817.08M | 1.05B | 1.23B |
| Cash, Cash Equivalents and Short-Term Investments | 273.12M | 292.48M | 448.70M | 517.32M | 457.30M | 827.91M |
| Total Debt | 79.24M | 90.76M | 95.12M | 101.12M | 73.13M | 53.78M |
| Total Liabilities | 126.03M | 126.53M | 130.60M | 154.70M | 122.23M | 148.21M |
| Stockholders Equity | 344.56M | 422.18M | 512.23M | 665.87M | 916.41M | 1.08B |
Cash Flow | ||||||
| Free Cash Flow | -173.60M | -200.99M | -239.25M | -225.71M | -206.26M | -181.05M |
| Operating Cash Flow | -172.77M | -200.30M | -237.73M | -220.52M | -184.81M | -115.09M |
| Investing Cash Flow | 28.95M | 75.69M | 163.29M | 106.16M | 163.66M | -505.12M |
| Financing Cash Flow | 25.48M | 116.67M | 95.69M | 2.95M | 11.96M | 633.59M |
Allogene Therapeutics Technical Analysis
Positive
1.35
Price Trends
1.16
Positive
1.21
Positive
1.48
Negative
Market Momentum
0.05
Negative
64.36
Neutral
81.36
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLO, the sentiment is Positive. The current price of 1.35 is above the 20-day moving average (MA) of 1.22, above the 50-day MA of 1.16, and below the 200-day MA of 1.48, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 64.36 is Neutral, neither overbought nor oversold. The STOCH value of 81.36 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALLO.
Allogene Therapeutics Risk Analysis
Allogene Therapeutics disclosed 79 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $273.83M | 8.32 | 48.34% | ― | ― | ― | |
46 Neutral | $306.20M | ― | -55.12% | ― | -100.00% | 30.91% | |
45 Neutral | $344.49M | ― | -22.44% | ― | -100.00% | 72.45% | |
41 Neutral | $256.08M | ― | 322.49% | ― | -31.30% | 36.26% | |
36 Underperform | $280.32M | ― | -85.21% | ― | ― | 38.94% | |
33 Underperform | $306.08M | ― | -89.37% | ― | ― | 9.84% |
* Healthcare Sector Average
ALLO
Allogene Therapeutics
1.35
-1.39
-50.73%
ABEO
Abeona Therapeutics
5.25
-1.28
-19.60%
IMAB
I-MAB
4.37
3.01
221.32%
FHTX
Foghorn Therapeutics
4.42
-3.18
-41.84%
TNYA
Tenaya Therapeutics
1.77
0.04
2.31%
NMRA
Neumora Therapeutics, Inc.
1.86
-12.88
-87.38%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.