Evorpacept shows promise in HER2-positive cancer trial

SOUTH SAN FRANCISCO - ALX Oncology Holdings Inc. (NASDAQ:ALXO), a clinical-stage biotechnology company with a market capitalization of approximately $95 million, reported positive outcomes from its ASPEN-06 Phase 2 clinical trial, indicating that its investigational drug evorpacept, in combination with other cancer therapies, has shown a significant tumor response in patients with HER2-positive advanced gastric cancer. The trial results were presented today at the 2025 ASCO Gastrointestinal Cancers Symposium. According to InvestingPro data, the stock has shown significant momentum with a 10.4% return over the past week, though it remains significantly below its 52-week high of $17.82.

The study, which evaluated the efficacy and safety of evorpacept in combination with trastuzumab, ramucirumab, and paclitaxel, demonstrated an overall response rate (ORR) of 41.3% in the intent-to-treat population. This compares favorably to the 30% ORR for historical control groups treated with ramucirumab and paclitaxel alone and 26.6% for the control group receiving trastuzumab, ramucirumab, and paclitaxel without evorpacept. InvestingPro analysis reveals the company maintains a strong liquidity position with a current ratio of 4.82, indicating robust short-term financial stability despite ongoing R&D investments.

Particularly notable was the response among patients with confirmed HER2-positive cancer, as determined by fresh biopsy or circulating tumor DNA (ctDNA). This subgroup experienced an ORR of 48.9% and a median duration of response (mDOR) of 15.7 months, surpassing the 24.5% ORR and 9.1 months mDOR observed in the control group. The progression-free survival hazard ratio in this group was 0.64, suggesting a lower risk of disease progression or death compared to the control.

Evorpacept was generally well tolerated, with the incidence of adverse events consistent with those observed in the control group. The trial's findings highlight the potential of CD47 inhibition in enhancing the effectiveness of existing cancer treatments for patients with HER2-positive tumors, particularly those who have already undergone prior HER2-targeted therapies.

The U.S. Food and Drug Administration has granted Fast Track designation for evorpacept for the second-line treatment of HER2-positive gastric or gastroesophageal junction carcinoma, reflecting the urgent need for new therapeutic options in this area.

ALX Oncology is hosting a conference call and webcast today to discuss the updated trial data, underscoring the company's commitment to advancing evorpacept as a treatment option for cancer patients. The presentation from the symposium will be made available on the company's website.

The information in this article is based on a press release statement from ALX Oncology Holdings Inc.

In other recent news, ALX Oncology Holdings Inc. has announced the adoption of a new equity incentive plan, aimed to attract top talent and align the interests of new employees with those of shareholders. The plan, named the 2025 Inducement Equity Incentive Plan, reserves 1.5 million shares of common stock for issuance in various forms of equity awards.

In the realm of analyst notes, Jefferies has downgraded ALX Oncology's stock from 'Buy' to 'Hold', reducing the price target from $12.00 to $2.00, following a detailed review of recent clinical trial outcomes. On the contrary, Stifel maintained its Hold rating on the company's shares, following positive results from a clinical trial involving ALX Oncology's product, evo, and JAZZ Pharmaceuticals' zanidatamab.

Additional recent developments include the resignation of ALX Oncology's Chief Medical (TASE:PMCN) Officer, Sophia Randolph, who will continue to provide consulting services for up to 18 months. The U.S. Food and Drug Administration also granted Fast Track designation to evorpacept for the treatment of HER2-positive gastric or GEJ carcinoma. Analyst firms UBS and Piper Sandler have maintained 'Buy' and 'Overweight' ratings respectively on ALX Oncology shares.

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