Cell Therapy Focused Allogene Therapeutics' Resource Prioritization A Bold Move, Says Analyst
Portfolio Pulse from Vandana Singh
Allogene Therapeutics Inc (NASDAQ:ALLO) is shifting focus in its clinical trials, deprioritizing the ALPHA2 and EXPAND trials for cema-cel and instead pursuing the ALPHA3 trial for LBCL patients. The company is also starting a new cohort for CLL patients and expanding into autoimmune diseases with ALLO-329. A partnership with Foresight Diagnostics for an MRD IVD is announced. Allogene's cash is expected to last into 2026. William Blair maintains an Outperform rating despite a 15.49% drop in ALLO shares.
January 05, 2024 | 7:32 pm
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Allogene Therapeutics is prioritizing the ALPHA3 trial over ALPHA2 and EXPAND, starting a new CLL cohort, expanding into autoimmune diseases with ALLO-329, and partnering with Foresight Diagnostics. Cash expected to last into 2026, and William Blair reiterates Outperform rating.
Allogene's strategic shift to prioritize the ALPHA3 trial and expand into new areas could be seen as a positive long-term strategy, but the immediate stock price reaction was negative with a 15.49% drop. The Outperform rating by William Blair suggests confidence in the company's direction, but the market's short-term reaction may be mixed due to the reallocation of resources and the current performance of the stock.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100