Allogene Therapeutics, Inc. ALLO incurred loss of 53 cents per share in second-quarter 2020, wider than the year-ago quarter’s loss of 41 cents. The Zacks Consensus Estimate was pegged at a loss of 55 cents.
With no marketed products, the company did not record any revenues during the quarter.
Shares of Allogene have gained 48% so far this year compared with the industry’s increase of 5.7%.
Quarter in Detail
Research & development (R&D) expenses were $47.3 million, up 48.9% from the year-ago quarter. The significant increase was presumably due to higher clinical activities.
General and administrative (G&A) expenses increased 11.8% year over year to $15.9 million.
The company had $1.1 billion in cash, cash equivalents and investments as of Mar 31, 2020 compared with $553 million as of Mar 31, 2020. The increase was led by a follow-on offering that raised $632.5 million in gross proceeds.
2020 Guidance Maintained
Allogene maintained its guidance for 2020. The company expects full-year loss to be in the range of $260-$280 million, including stock-based compensation expense of $70 million to $75 million.
Pipeline Update
Allogene has four pipeline candidates in early-stage of development, including three CAR T cell product candidates — UCART19, ALLO-501, ALLO-501A and ALLO-715 — and a monoclonal antibody (mAB), ALLO-647. Please note that the company utilizes ALLO-647 as part of its differentiated lymphodepletion regimen in clinical studies, ALLO-501 and ALLO-715
Initial data from the phase I study evaluating ALLO-501 demonstrated an overall response rate of 75% and a complete response rate of 44% in CAR T naïve relapsed/refractory (r/r) Non-Hodgkin Lymphoma patients.
Allogene initiated enrollment in an abbreviated phase I study, which will evaluate next generation anti-CD19 AlloCAR T, ALLO-501A, in patients with r/r large B-cell lymphoma, during the second quarter. The company anticipates to begin the phase II portion of this study in 2021. Please note that ALLO-501A is the second-generation version of ALLO-501.
A phase I study is evaluating ALLO-715 in patients with r/r multiple myeloma. The company plans to initiate a phase I study to evaluate ALLO-715 in combination with SpringWorks’ investigational gamma secretase inhibitor (“GSI”), nirogacestat, for treating R/R MM in the second half of 2020.
Allogene Therapeutics, Inc. Price, Consensus and EPS Surprise
Allogene Therapeutics, Inc. price-consensus-eps-surprise-chart | Allogene Therapeutics, Inc. Quote
Zacks Rank and Stocks to Consider
Allogene currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the biotech sector include Emergent Biosolutions Inc. EBS, Horizon Therapeutics HZNP and Unum Therapeutics Inc. UMRX, all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Emergent Biosolutions’ earnings per share estimates have moved up from $3.45 to $3.58 for 2020 in the past 30 days. The company delivered an earnings surprise of 127.41%, on average, in the last four quarters. The stock has risen 145.7% so far this year.
Horizon Therapeutics’ earnings per share estimates have increased from $1.78 to $2.00 for 2020 in the past 30 days. The company delivered an earnings surprise of 43.99%, on average, in the last four quarters. The stock has surged 97.9% so far this year.
Unum Therapeutics’ loss per share estimates have narrowed from 53 cents to 47 cents for 2020 in the past 30 days. The company delivered an earnings surprise of 36.6%, on average, in the last four quarters. The stock has surged 294.3% so far this year.
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