Evorpacept shows promise in B-cell lymphoma treatment

SOUTH SAN FRANCISCO – ALX Oncology Holdings Inc. (NASDAQ:ALXO), a clinical-stage biotechnology company with a market capitalization of $28.29 million, has reported promising results from a Phase 1/2 trial for its lead drug candidate, evorpacept, in combination with rituximab and lenalidomide (R2) for the treatment of B-cell non-Hodgkin lymphoma (B-NHL). According to InvestingPro data, the company maintains a strong liquidity position with a current ratio of 7.26, indicating robust short-term financial stability. The trial, which is investigator-sponsored and led by MD Anderson Cancer Center, demonstrated that the combination was well-tolerated and achieved a complete response (CR) rate of 83% in patients with indolent relapsed or refractory B-NHL.

This CR rate is notably higher than the 34% historical rate with R2 alone. The study enrolled 20 patients, including those with indolent and aggressive forms of the disease. The regimen showed no dose-limiting toxicities, and after a median follow-up of 28 months, the two-year progression-free survival rate was 69%, with an overall survival rate of 84%.

The trial’s lead investigator, Dr. Paolo Strati from MD Anderson, highlighted the potential of evorpacept to activate the immune system and enhance the efficacy of anti-cancer antibodies like rituximab. This could improve outcomes for patients who have shown resistance to standard treatments. InvestingPro analysis reveals that while the company is rapidly burning through cash, it maintains more cash than debt on its balance sheet, providing runway for continued clinical development. Subscribers can access 10+ additional ProTips and detailed financial metrics.

The Phase 2 portion of the trial, focusing on previously untreated indolent NHL patients, has completed enrollment, with results anticipated to provide further insights into evorpacept’s therapeutic benefits.

ALX Oncology’s CEO, Jason Lettmann, expressed optimism about the drug’s potential to deepen responses to existing cancer therapies and address unmet needs in treatment. Final results from the Phase 1 study will be presented at the American Association for Cancer Research Annual Meeting on April 29, 2025.

The company, which is advancing a pipeline of novel cancer therapies, aims to establish evorpacept as a foundational treatment in immuno-oncology. While these findings are encouraging, they are forward-looking statements subject to risks and uncertainties, and the drug’s success will depend on continued positive results in ongoing and future trials. With the next earnings report scheduled for May 8, 2025, investors should note that analysts do not anticipate profitability this year, with a forecasted EPS of -$1.68 for FY2025. For comprehensive financial analysis and real-time updates, visit InvestingPro.

This report is based on a press release statement and does not reflect any promotional content.

In other recent news, ALX Oncology Holdings Inc. announced that its Phase 2 clinical trials, ASPEN-03 and ASPEN-04, did not meet primary endpoints for treating advanced head and neck squamous cell carcinoma with evorpacept in combination with Merck’s KEYTRUDA®. Consequently, the company will discontinue this combination but continues to explore evorpacept’s potential in other cancer treatments, including breast and colorectal cancer. Additionally, ALX Oncology received U.S. FDA clearance for an Investigational New Drug application for ALX2004, a novel antibody-drug conjugate targeting EGFR-expressing solid tumors, with Phase 1 trials planned for mid-2025.

In analyst updates, Jefferies upgraded ALX Oncology’s stock from Hold to Buy, raising the price target to $3, citing a favorable risk/reward balance and potential upcoming catalysts. Conversely, Stifel reduced its price target to $1.50 while maintaining a Hold rating, expressing concerns over development strategies and regulatory risks. In corporate restructuring, ALX Oncology plans a 30% workforce reduction to prioritize its product pipeline, incurring approximately $2.2 million in severance costs. The company also announced the departure of President and Chief Scientific Officer Dr. Jaume Pons, effective April 2025, as part of its strategic reorganization.

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