Allogene's (ALLO) Q2 Loss Narrower Than Expected, Sales Miss
Allogene Therapeutics, Inc. ALLO incurred a loss of 53 cents per share in second-quarter 2023, narrower than the Zacks Consensus Estimate of a loss of 59 cents. In the year-ago quarter, the company reported a loss of 52 cents.
ALLO recorded revenues of $0.04 million during the quarter, missing the Zacks Consensus Estimate that was pegged at $0.1 million. Revenues were down 48.8% year over year.
Shares of Allogene have lost 25.4% in the year-to-date period compared with the industry’s 12.3% decline.
Image Source: Zacks Investment Research
Quarter in Detail
Research & development (R&D) expenses were $62.0 million, up 8.5% from the year-ago quarter’s level.
General and administrative (G&A) expenses declined 5.0% year over year to $18.5 million.
Allogenehad $544.5 million of cash, cash equivalents and investments as of Jun 30, 2023, compared with $514.0 million as of Mar 31, 2023. This rise in cash balance was due to the completion of an equity financing issue wherein Allogene raised net proceeds of around $87.9 million.
Maintains 2023 Guidance
Allogene anticipates operating expenses for the full year to be approximately $340 million, which includes non-cash stock compensation expenses of around $80 million.
Cash burn for 2023 is expected to be approximately $230 million. Based on these projections, management expects the existing cash runway to be sufficient to fund operations into second-quarter 2025.
Pipeline Update
Allogene has six pipeline candidates in early-stage of clinical development, including five AlloCAR T cell product candidates, namely ALLO-501, ALLO-501A, ALLO-715, ALLO-605 and ALLO-316 and a monoclonal antibody (mAB) ALLO-647.
ALLO-501 is being evaluated in a phase I ALPHA study for r/r non-Hodgkin lymphoma (NHL) subtypes. A second-generation version of ALLO-501, ALLO-501A is also being developed for NHL in the phase I/II ALPHA2 study.
This June, Allogene reported long-term follow-up data from the phase I ALPHA/ALPHA2 studies which evaluated its lead product candidate ALLO-501/501A combined with a lymphodepletion regimen comprised of fludarabine, cyclophosphamide and ALLO-647 (“FCA90”) in LBCL patients. Data from the study showed that treatment with the combination dose achieved an overall response rate (ORR) of 67%, including a complete response rate (CRR) of 58%. The responses in patients that received this combination dose were durable, with a 42% CRR at six months, with the longest complete response ongoing at more than 31 months.
Management is currently enrolling study participants in the phase II portion of the ALPHA2 study, which evaluates ALLO-501A in patients with relapsed/refractory (r/r) large B cell lymphoma (LBCL). The study is expected to complete enrolment in the first half of 2024, and a data readout is expected by 2024-end.
The mAB candidate, ALLO-647, is part of the lymphodepletion regimen, which will likely increase the potency of allogeneic CAR T cell therapies. Management started the phase II EXPAND study during first-quarter 2023 to demonstrate the contribution of ALLO-647 to the standard fludarabine and cyclophosphamide lymphodepletion regimen. Allogene plans to utilize ALLO-647 in all its clinical studies to enable the expansion and persistence of AlloCAR T product candidates.
Allogene Therapeutics, Inc. Price
Allogene Therapeutics, Inc. price | Allogene Therapeutics, Inc. Quote
Zacks Rank & Other Stocks to Consider
Allogene currently has a Zacks Rank #3 (Hold). Some other top-ranked stocks in the overall healthcare sector include Caribou Biosciences CRBU, Johnson & Johnson JNJ and Novartis NVS, carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Caribou Biosciences’ loss estimates for 2023 have narrowed from $1.91 to $1.63 per share in the past 30 days. During the same period, the loss estimates per share for 2024 have narrowed from $2.60 to $1.72. Year to date, Caribou Biosciences’ stock has risen 12.4%.
Caribou Biosciences beat earnings estimates in three of the last four quarters while missing the mark on one occasion. On average, the company’s earnings witnessed a negative earnings surprise of 1.36%. In the last reported quarter, CRBU delivered an earnings surprise of 4.17%.
In the past 30 days, estimates for J&J’s 2023 earnings per share have increased from $10.66 to $10.73. During the same period, the earnings estimates per share for 2024 have risen from $11.01 to $11.28. Shares of J&J are down 3.8% in the year-to-date period.
Earnings of J&J beat estimates in each of the last four quarters, witnessing an average earnings surprise of 5.58%. In the last reported quarter, J&J’s earnings beat estimates by 7.28%.
In the past 30 days, the estimate for Novartis’ 2023 and 2024 EPS have increased from $6.74 to $6.89 and $7.28 to $7.45, respectively. Shares of Novartis are up 13.3% in the year-to-date period.
Earnings of Novartis beat estimates in each of the last four quarters, witnessing an average earnings surprise of 6.56%. Novartis’ earnings beat estimates by 8.93%.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Novartis AG (NVS) : Free Stock Analysis Report
Johnson & Johnson (JNJ) : Free Stock Analysis Report
Allogene Therapeutics, Inc. (ALLO) : Free Stock Analysis Report
Caribou Biosciences, Inc. (CRBU) : Free Stock Analysis Report
