Allogene stock maintains Market Perform rating at Citizens JMP after trial adjustment

Published 04/08/2025, 19:36
Allogene stock maintains Market Perform rating at Citizens JMP after trial adjustment

Investing.com - Citizens JMP analyst Reni Benjamin reiterated a Market Perform rating on Allogene (NASDAQ:ALLO), whose shares have declined over 26% in the past week, following the company’s announcement of changes to its ALPHA3 study. The company is set to report earnings on August 6, according to InvestingPro data.

Last Friday, Allogene revealed it has selected standard FC as the lymphodepletion regimen for its ALPHA3 study evaluating cema-cel in first-line consolidation for LBCL, abandoning the ALLO-647 component after a Grade 5 event resulted in hepatic failure. Despite recent challenges, InvestingPro data shows the company maintains a strong liquidity position with a current ratio of 9.71 and more cash than debt on its balance sheet.

The company conducted an unplanned analysis triggered by this patient death, performing biomarker and MRD conversion rate analysis that led to closing the FCA arm for enrollment while maintaining the planned futility analysis timeline for the first half of 2026.

Citizens JMP maintains its Market Perform rating, noting that while the interim analysis could serve as a clearing event, uncertainties remain about enrollment numbers for the study following this adjustment.

The research firm indicated that Allogene shares currently trade at approximately 74% of ending first quarter 2025 cash, which it views as a fair discount consistent with other biotech companies facing similar uncertainties.

In other recent news, Allogene Therapeutics has made adjustments to its ALPHA3 trial protocol following a safety event. The company decided to use standard fludarabine and cyclophosphamide for lymphodepletion in its study on large B-cell lymphoma, closing the arm that included ALLO-647 due to a severe adverse event. This change was made after discussions with the FDA and the study’s monitoring board. Meanwhile, Allogene presented promising data at the ASCO meeting for its ALLO-316 therapy in renal cell carcinoma, which showed a confirmed overall response rate of 31% in CD70+ patients. Analysts from Citi and H.C. Wainwright have maintained their Buy ratings on Allogene, citing the promising efficacy and manageable safety profile of ALLO-316. However, Citizens JMP downgraded Allogene’s stock to Market Perform, highlighting delays in the ALPHA3 development timeline as a concern. The timeline for the lymphodepletion selection and futility analyses has been pushed to the first half of 2026. These developments reflect ongoing evaluations and adjustments in Allogene’s clinical programs.

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