Allogene Therapeutics Inc. (ALLO) is seeking to raise $550 million from an underwritten public offering of 11,702,128 shares of its common stock.
The biotech company is making the offering at a price to the public of $47 per share. Shares in Allogene fell 1.9% to $48 in Tuesday’s pre-market trading.
The share sale is expected to close on June 4 subject to customary closing conditions. In addition, Allogene has granted the underwriters a 30-day option to purchase up to 1,755,319 in additional shares of its common stock at the public offering price, less the underwriting discounts and commissions.
Net proceeds from the sale are intended for general corporate purposes, including clinical trial expenses, research and development expenses, general and administrative expenses, and capital expenditures. Goldman Sachs & Co., Jefferies and Cowen are acting as joint lead book-running managers for the offering.
Allogene is a clinical-stage biotechnology company engaged in the development of allogeneic chimeric antigen receptor T cell (AlloCAR T) therapies for cancer. Shares skyrocketed 67% in May after the company disclosed positive initial data from its ALLO-501 CD19 allogeneic CAR T, showing both activity and a tolerable safety profile.
In reaction to the data, five-star analysts Salveen Richter at Goldman Sachs this week raised the stock’s price target to $66 from $45 and kept a Buy rating.
The analyst asserts that the data is "highly encouraging" and believes it further de-risks Allogene's allogeneic CAR T platform.
In line with Richter’s outlook, the stock currently shows a Strong Buy consensus from the Street with 10 recent Buy ratings vs 3 Hold ratings. The average analyst price target stands at $53.18, promising some 9% upside potential over the coming year. (See Allogene stock analysis on TipRanks). Related News:
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