Allogene stock continues ALPHA3 trial with standard FC regimen after safety event

Investing.com - Allogene Therapeutics (NASDAQ:ALLO), currently trading at $1.15 and down over 26% in the past week, will continue its ALPHA3 study with a standard FC lymphodepletion regimen following a patient death related to its ALLO-647 component. According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 9.71x.

The company announced last Friday that it has discontinued the FCA arm of the trial after an unplanned analysis triggered by a Grade 5 event (patient death) attributed to ALLO-647, which resulted in hepatic failure.

Allogene’s ALPHA3 study is evaluating cema-cel in first-line consolidation for Large B-Cell Lymphoma (LBCL), with a planned futility analysis still on track for the first half of 2026.

Citizens JMP analyst reiterated a Market Perform rating on Allogene stock, noting that management’s decision to evaluate data in real time and adjust the study could help streamline the process and get enrollment back on track.

The analyst maintained the Market Perform rating based on Allogene shares currently trading at approximately 74% of the company’s projected ending first quarter 2025 cash position, which was described as a fair discount consistent with other biotech companies facing similar uncertainties.

In other recent news, Allogene Therapeutics announced modifications to its ALPHA3 study protocol following a safety incident. The company has chosen the standard fludarabine and cyclophosphamide (FC) regimen for lymphodepletion, halting the arm using ALLO-647 due to a Grade 5 adverse event linked to hepatic failure. This decision was made in collaboration with the ALPHA3 Data and Safety Monitoring Board and the U.S. Food and Drug Administration. Meanwhile, Citi analysts have reiterated a Buy rating for Allogene, maintaining a price target of $4.00 after the company presented updated Phase 1b TRAVERSE data at the ASCO meeting. The data revealed a 25% confirmed objective response rate in CD70+ renal cell carcinoma patients. Similarly, H.C. Wainwright analysts reaffirmed their Buy rating, with an $8.00 price target, following promising outcomes from the ALLO-316 study in heavily pretreated renal cell carcinoma patients. This study demonstrated a 31% overall response rate with ongoing responses in several patients. These developments underscore Allogene’s ongoing research efforts and the attention from analysts.

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