ALX Oncology Holdings Inc (ALXO) Reports Q3 2023 Financial Results and Corporate Developments
ALX Oncology Holdings Inc (NASDAQ:ALXO) announced positive interim Phase 2 clinical trial results and completed a public offering generating $63.2 million.
Leadership realignment to focus on the development of the platform asset evorpacept.
Reported a net loss of $51.0 million for Q3 2023, with R&D expenses increasing due to the advancement of evorpacept.
ALX Oncology believes its financial resources are sufficient to fund operations into early 2026.
On November 13, 2023, ALX Oncology Holdings Inc (NASDAQ:ALXO) released its 8-K filing, announcing its financial results for the third quarter ended September 30, 2023, and providing a corporate update. The company, which is developing therapies that block the CD47 immune checkpoint pathway, highlighted several key achievements and developments during the quarter.
Financial Highlights
ALX Oncology reported a net loss of $51.0 million for the third quarter of 2023, or $1.24 per basic and diluted share, compared to a net loss of $35.3 million, or $0.87 per basic and diluted share, for the same period in 2022. The increase in net loss was primarily due to higher research and development (R&D) expenses, which rose to $45.8 million from $29.4 million in the prior-year period. This increase reflects the company's investment in the clinical development of evorpacept, including an increase in the number of active trials and patient enrollment.
General and administrative (G&A) expenses were slightly up at $7.5 million compared to $7.3 million in the third quarter of 2022. The company's cash position remains strong, with cash, cash equivalents, and investments totaling $196.4 million as of September 30, 2023. ALX Oncology believes that its financial resources, along with the ability to draw down an additional $40 million of its term loan and the net proceeds from its recent public offering, will fund planned operations into early 2026.
Clinical and Corporate Developments
ALX Oncology reported positive interim Phase 2 ASPEN-06 clinical trial results for evorpacept in the treatment of advanced HER2-positive gastric/gastroesophageal junction (GEJ) cancer. The company also completed a public offering, which generated gross proceeds of approximately $63.2 million. A leadership realignment was implemented to match the maturing portfolio of programs for evorpacept and refine the long-term development strategy.
Jason Lettmann, CEO of ALX Oncology, commented on the quarter's achievements, stating,
This past quarter proved to be an important growth milestone for the Company highlighted by the outstanding interim results from the ASPEN-06 phase 2 clinical trial which again demonstrated evorpacepts best-in-class safety profile and unique mechanism of action."
He also noted the acceleration of the company's clinical programs and the momentum heading into the final months of 2023.
Looking Ahead
ALX Oncology outlined upcoming clinical milestones for evorpacept's development pipeline, with top line results expected from various Phase 2 trials in the first and second halves of 2024. The company also plans to initiate a Phase 3 ASPEN-06 study for gastric/GEJ cancer.
The company's lead product candidate, evorpacept, has shown promising clinical responses across a range of hematologic and solid malignancies in combination with leading anti-cancer antibodies. ALX Oncology's focus remains on combining evorpacept with anti-cancer antibodies, antibody-drug conjugates (ADCs), and PD-1/PD-L1 immune checkpoint inhibitors.
For further information on ALX Oncology's financials and corporate updates, investors and interested parties are encouraged to review the full details in the company's 8-K filing.
Explore the complete 8-K earnings release (here) from ALX Oncology Holdings Inc for further details.
This article first appeared on GuruFocus.
