ALXO stock plunges to 52-week low of $0.73 amid market challenges

Published 20/03/2025, 20:44
ALXO stock plunges to 52-week low of $0.73 amid market challenges

In a stark reflection of the volatile market conditions, Alx Oncology Holdings Inc. (ALXO) stock has tumbled to a 52-week low, reaching a price level of just $0.73. This significant downturn has shrunk the company’s market capitalization to $39.5 million, marking a dramatic shift from its previous performance, with the stock experiencing a precipitous 1-year decline of -94.08%. According to InvestingPro analysis, despite the company maintaining a strong current ratio of 7.26, its overall financial health score remains weak. Investors have been closely monitoring ALXO as it navigates through a challenging phase, with the latest price point underscoring the intense pressure the biopharmaceutical sector is facing amidst a complex healthcare landscape and shifting investor sentiment. With analyst price targets ranging from $1.50 to $5.00 and the next earnings report due on May 8, 2025, InvestingPro subscribers can access 12 additional key insights about ALXO’s financial outlook and market position.

In other recent news, ALX Oncology has made headlines with several key developments. The company announced a strategic workforce reduction of approximately 30% to prioritize its product pipeline and manage cash reserves, expecting related costs of about $2.2 million. Concurrently, Jefferies upgraded ALX Oncology’s stock from Hold to Buy, increasing the price target to $3.00, citing a favorable risk/reward balance and potential upside from upcoming clinical trial results. In contrast, Stifel adjusted its price target for the company to $1.50, maintaining a Hold rating due to concerns over development strategies and regulatory risks.

UBS also revised its price target for ALX Oncology to $2.20 while maintaining a Buy rating, following the release of ASPEN-06 study data, which highlighted the need for further investigation into evorpacept’s efficacy. The company’s recent presentation at the ASCO-GI conference revealed mixed results, with progression-free survival not clearly differentiating between treatment and control groups. Despite these challenges, Jefferies analyst Michael Yee noted the company’s market valuation is significantly lower than its cash reserves, suggesting limited downside.

Additionally, ALX Oncology announced the departure of its President and Chief Scientific Officer, Dr. Jaume Pons, as part of the restructuring efforts. Stifel analysts maintained a $3.00 price target, observing that evorpacept could offer benefits in combination therapies, although they acknowledged uncertainties regarding future plans. These developments reflect ongoing strategic adjustments as ALX Oncology navigates the complexities of clinical trials and regulatory landscapes.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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