Allogene (ALLO) Sinks 16% on Downgrade, Trial Delays

Faizan Farooque

Thu, May 15, 2025, 6:43 AM 1 min read

Allogene Therapeutics (ALLO, Financials) dropped astir 16% to $0.95 connected Monday aft Citizens JMP downgraded the banal to Market Perform, citing delays successful its ALPHA3 programme and deficiency of near-term milestones.

• Warning! GuruFocus has detected 2 Warning Sign with ALLO.

The institution postponed LD enactment and futility analyses for its ALPHA3 proceedings from mid-2025 to the archetypal fractional of 2026. Analyst Reni Benjamin said the extended timeline and lack of catalysts prompted the downgrade. ALLO shares are trading adjacent their 52-week debased and person fallen implicit 54% successful the past six months.

Citizens JMP removed ALLO-501A gross estimates from its valuation model. The banal is present valued astatine astir 74% of its Q1 currency balance, successful enactment with discounts applied to biotech peers facing akin uncertainty.

Allogene posted a nett nonaccomplishment of $59.7 million, oregon $0.28 per share, successful Q1 2025matching expectations. It ended the 4th with $335.5 cardinal successful currency and a antagonistic endeavor worth of astir -$88 million.

The institution expects to pain $150 cardinal successful currency this twelvemonth and projects full-year GAAP operating expenses of $230 million. Despite headwinds, Allogene is expanding ALPHA3 internationally and anticipates proof-of-concept information for ALPHA3 and ALLO-329 successful the archetypal fractional of 2026.

This nonfiction archetypal appeared connected GuruFocus.