Allogene Drops After Analyst Review of Drug-Trial Results

Allogene shares were lower after an analyst called the results of an early testing of its multiple-myeloma treatment candidate 'underwhelming.'
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Allogene  (ALLO) - Get Report shares dropped on Wednesday after the company unveiled trial results of a multiple-myeloma treatment candidate, and an analyst called the results "underwhelming." 

One patient died during trials of Allogene's ALLO-715 experimental treatment, leading JPMorgan analyst Cory Kasimov to say that "although early, efficacy looks underwhelming when compared to autologous CAR T therapies."

Allogene in a statement expressed confidence in ALLO-715.

"We’re looking forward to presenting initial clinical data for our first anti-BCMA AlloCAR T therapy, ALLO-715, which we believe will provide insights into how we might optimize lymphodepletion and cell dose to reach its potential for patients in need of readily available treatments options,” said Rafael Amado, a physician who is chief medical officer at Allogene. 

Allogene shares at last check were down 13% to $29.38. Through the close of Tuesday trading the stock was off 39% from its 52-week high of $55, set in late May.

The company plans to present initial data from its Phase 1 trial of about 20 patients at a medical meeting in fiscal fourth quarter 2020. 

The study is enrolling patients with relapsed/refractory multiple myeloma who have been treated with at least three prior lines of therapy. 

Separately, Allogene reported a third quarter net loss of 52 cents a share compared with 50 cents in the year-earlier quarter. Shares outstanding rose 24% to 127.1 million. 

For the year, Allogene expects GAAP losses between $260 million and $280 million including non-cash stock-based compensation expenses totaling $70 million to $75 million. 

In 2021 Allogene expects to have five clinical trials underway, including its first pivotal trial, Amado said.