Allogene Therapeutics (ALLO) AI Stock Analysis

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Allogene Therapeutics

(NASDAQ:ALLO)

41Neutral

Allogene Therapeutics' overall stock score reflects significant financial challenges due to ongoing losses and a reliance on external funding. Positive developments in clinical trials and a strong cash position mitigate some risks, but the lack of profitability and uncertain technical outlook weigh heavily on the stock's attractiveness.

Positive Factors

Financial Position

Allogene ended 3Q24 with approximately $403.4M in cash and equivalents, which should support an operational runway extending into the second half of 2026.

Therapeutic Potential

Cema-cel has the potential to leapfrog other autologous and allogeneic CD19 CAR-T therapies, remain competitive for longer, and expand the total addressable market.

Negative Factors

Statistical Challenges

Achieving statistical significance in the ALPHA3 interim analysis may be challenging due to a relatively small alpha spend.

Trial Uncertainty

The futility analysis for ALPHA3 will focus on minimal residual disease conversion, and there is uncertainty on whether ALLO-647 will be part of the lymphodepletion regimen.

Allogene Therapeutics (ALLO) vs. S&P 500 (SPY)

Market Cap

$310.69M

Dividend YieldN/A

Average Volume (3M)3.37M

Price to Earnings (P/E)―

Beta (1Y)1.79

Revenue Growth-86.25%

EPS Growth36.10%

CountryUS

Employees226

SectorHealthcare

Sector Strength71

IndustryBiotechnology

Share Statistics

EPS (TTM)-1.33

Shares Outstanding217,264,740

10 Day Avg. Volume3,337,041

30 Day Avg. Volume3,372,297

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)15998.59

Price to Cash Flow (P/CF)-2.40

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$8.50

Price Target Upside494.41% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering12

Allogene Therapeutics Business Overview & Revenue Model

Company DescriptionAllogene Therapeutics, Inc., a clinical stage immuno-oncology company, develops and commercializes genetically engineered allogeneic T cell therapies for the treatment of cancer. It develops, manufactures, and commercializes UCART19, an allogeneic chimeric antigen receptor (CAR) T cell product candidate for the treatment of pediatric and adult patients with R/R CD19 positive B-cell ALL. The company also develops ALLO-501, an anti-CD19 allogeneic CAR T cell product candidate that is in Phase I clinical trial for the treatment of R/R non-Hodgkin lymphoma; and ALLO-501A, which is in Phase I/II clinical trial for the treatment R/R large B-cell lymphoma or transformed follicular lymphoma. In addition, it is developing ALLO-715, an allogeneic CAR T cell product candidate that is in a Phase I clinical trial for treating R/R multiple myeloma; ALLO-605, an allogeneic CAR T cell product candidate for the treatment of multiple myeloma; ALLO-647, an anti-CD52 monoclonal antibody; CD70 to treat renal cell cancer; ALLO-819, an allogeneic CAR T cell product candidates for the treatment of acute myeloid leukemia; and DLL3 for the treatment of small cell lung cancer and other aggressive neuroendocrine tumors. The company has license and collaboration agreements with Pfizer Inc.; Servier; Cellectis S.A.; and Notch Therapeutics Inc., as well as clinical trial collaboration agreement with SpringWorks Therapeutics, Inc. It also has a strategic collaboration agreement with The University of Texas MD Anderson Cancer Center for the preclinical and clinical investigation of allogeneic CAR T cell product candidates. The company was incorporated in 2017 and is headquartered in South San Francisco, California.

How the Company Makes MoneyAllogene Therapeutics generates revenue primarily through partnerships, collaborations, and licensing agreements with other pharmaceutical and biotechnology companies. These partnerships often involve upfront payments, milestone payments based on the achievement of developmental and regulatory goals, and royalties on potential sales of commercialized products. The company's business model is heavily reliant on research and development funding, as well as strategic alliances that provide access to additional resources and expertise. As of now, Allogene does not generate revenue from product sales, as its therapies are still in clinical development stages.

Allogene Therapeutics Financial Statement Overview

Summary

Allogene Therapeutics faces significant financial challenges, with declining revenues, persistent losses, and dependence on external funding. While the balance sheet shows some resilience with cash reserves and moderate leverage, the lack of profitability and cash flow growth indicates the company must address operational inefficiencies to achieve sustainable growth.

Income Statement

Very Negative

Allogene Therapeutics has struggled to generate revenue, with a sharp decline from $38.5M in 2021 to negligible amounts in 2023 and 2024. Consistently negative EBIT and net income reflect ongoing operational challenges. The lack of revenue growth and persistent losses highlight significant financial hurdles.

Balance Sheet

Negative

The company maintains a relatively low debt-to-equity ratio, indicating moderate leverage. However, a declining equity base from $1.08B in 2020 to $422M in 2024 signals potential financial strain. The substantial cash reserves provide a buffer, but the shrinking equity ratio raises concerns about long-term stability.

Cash Flow

Negative

Negative operating and free cash flows indicate poor cash generation from operations. While financing activities have bolstered cash levels, the reliance on external funding to sustain operations could pose risks. The absence of positive cash flow growth further underscores operational inefficiencies.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
22.00K	95.00K	243.00K	38.49M	0.00
	Gross Profit
22.00K	-242.82M	-16.48M	25.42M	-11.54M
	EBIT
-273.20M	-327.74M	-335.45M	-255.79M	-258.24M
	EBITDA
-243.33M	-300.29M	-321.24M	-169.74M	-250.81M
	Net Income Common Stockholders
-257.59M	-327.26M	-329.81M	-244.84M	-233.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
292.48M	448.70M	576.47M	809.48M	1.03B
	Total Assets
548.71M	642.84M	817.08M	1.04B	1.23B
	Total Debt
83.25M	95.12M	95.12M	69.93M	53.78M
	Net Debt
8.03M	11.97M	-481.35M	-739.55M	-978.34M
	Total Liabilities
126.53M	130.60M	151.21M	122.23M	148.21M
	Stockholders Equity
422.18M	512.23M	665.87M	916.41M	1.08B
Cash Flow		Free Cash Flow
-200.99M	-239.25M	-225.71M	-206.26M	-181.05M
	Operating Cash Flow
-200.30M	-237.73M	-220.52M	-184.81M	-115.09M
	Investing Cash Flow
75.69M	163.29M	106.16M	163.66M	-505.12M
	Financing Cash Flow
116.67M	95.69M	2.95M	11.96M	633.59M

Allogene Therapeutics Technical Analysis

Technical Analysis Sentiment

Negative

Last Price1.43

Price Trends

50DMA

1.75

Negative

100DMA

1.91

Negative

200DMA

2.30

Negative

Market Momentum

MACD

-0.11

Negative

RSI

43.11

Neutral

STOCH

63.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLO, the sentiment is Negative. The current price of 1.43 is below the 20-day moving average (MA) of 1.50, below the 50-day MA of 1.75, and below the 200-day MA of 2.30, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 63.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ALLO.

Allogene Therapeutics Risk Analysis

Allogene Therapeutics disclosed 76 risk factors in its most recent earnings report. Allogene Therapeutics reported the most risks in the “Tech & Innovation” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Allogene Therapeutics Peers Comparison

Overall Rating

UnderperformOutperform

Sector (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMPX	60 Neutral	$234.39M	―	-36.07%	―	―	-7.93%
Sector *	50 Neutral	$5.52B	2.98	-43.78%	2.78%	16.94%	3.55%
AUTL	44 Neutral	$356.60M	―	-81.91%	―	496.00%	27.50%
ALLO	41 Neutral	$310.69M	―	-55.13%	―	-86.25%	36.10%
ZBIO	38 Underperform	$355.22M	―		―	―	―
SANA	37 Underperform	$407.30M	―	-99.17%	―	―	19.94%
ANNX	27 Underperform	$163.47M	―	-50.84%	―	―	43.21%

* Healthcare Sector Average

Performance Comparison

ALLO

Allogene Therapeutics

1.46

-2.04

-58.29%

AUTL

Autolus Therapeutics

1.40

-3.46

-71.19%

ANNX

Annexon Biosciences

1.54

-3.58

-69.92%

CMPX

Compass Therapeutics

1.70

0.13

8.28%

SANA

Sana Biotechnology

1.70

-6.71

-79.79%

ZBIO

Zenas BioPharma, Inc.

8.72

-9.25

-51.47%

Allogene Therapeutics Earnings Call Summary

Earnings Call Date: Mar 13, 2025 | % Change Since: -24.34% | Next Earnings Date: Apr 30, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive outlook with significant advancements in Allogene's CAR T programs, notably in large B cell lymphoma and autoimmune diseases. While there are financial losses and some strategic uncertainties, the overall sentiment is bolstered by strong trial progress and financial positioning.

Highlights

Pivotal Phase II ALLO-501A Trial Progress

The ALLO-501A trial in large B cell lymphoma is advancing with 40 sites activated, showing strong community and academic enthusiasm. Anticipated key milestones include lymphodepletion selection and futility analysis by mid-2025.

Expansion into Autoimmune Diseases with ALLO-329

ALLO-329 received FDA clearance for Phase I trials, marking Allogene's official expansion into autoimmune diseases. The dual-targeting CAR T product candidate could potentially eliminate the need for lymphodepletion.

Encouraging Phase I Data for ALLO-316 in Renal Cell Carcinoma

ALLO-316 shows promise in renal cell carcinoma with a 50% best overall response rate. The program is positioned for potential strategic partnerships, with data updates expected mid-2025.

Strong Financial Position

Allogene reported $373.1 million in cash reserves with a cash runway extending into the second half of 2026. The company maintains capital discipline, preparing for strategic growth.

Lowlights

Net Loss for 2024

Allogene reported a net loss of $257.6 million for the full year 2024, reflecting the high costs associated with research and development and operational expenses.

Uncertainty in Lymphodepletion Strategy

The decision on whether ALLO-647 is needed in the ALPHA3 trial remains uncertain, with potential implications for trial costs and proprietary status.

Company Guidance

In the call, Allogene Therapeutics provided robust guidance for 2025, highlighting several key metrics. The company expects a cash burn of approximately $170 million and anticipates full-year GAAP operating expenses to be around $250 million, including an estimated non-cash stock-based compensation expense of $50 million. Their financial position by the end of 2024 was strong, with $373.1 million in cash, cash equivalents, and investments, projecting a cash runway into the second half of 2026. Research and development expenses for the fourth quarter of 2024 were $45 million, bringing the full-year total to $192.3 million. General and administrative expenses for the same period were $15.5 million, with full-year expenses at $65.2 million. The net loss for 2024 amounted to $257.6 million or $1.32 per share. These financial strategies underpin the company's ongoing initiatives in advancing their pipeline and strategic objectives, including their pioneering programs in large B cell lymphoma, autoimmune disease, and renal cell carcinoma.

Allogene Therapeutics Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Allogene Therapeutics Announces Executive Departure and Transition

Neutral

Jan 29, 2025

On January 23, 2025, Allogene Therapeutics announced that Timothy Moore would be leaving the company on February 28, 2025, with eligibility for certain severance benefits. The company plans to enter a consulting agreement with Mr. Moore, which could impact their operational strategy and stakeholder relations.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.