ALLO - Allogene down 11% following downgrade to underperform at BofA
- BofA Securities has downgraded Allogene Therapeutics ( NASDAQ: ALLO ) to underperform citing a lack of catalysts and concerns over the competitiveness of its CAR-T therapy ALLO-715.
- The firm has cut its price target to $9 from $24 (~3% upside based on Friday's close).
- The stock is down 11% in early Monday afternoon trading.
- Analyst Jason Gerberry said that following data presentations at the American Society of Hematology Annual Meeting, which ends Tuesday, ALLO-715, in phase 1 for multiple myeloma, has lost its competitiveness.
- He noted that data on ALLO-715 released last month showed a complete response rate of 17% at the likely pivotal dose. That compares to 70%-80% rates achieved with autologous approaches, such as Legend Biotech ( LEGN ) and Johnson & Johnson's ( JNJ ) Carvykti (ciltacabtagene autoleucel).
- Gerberry added that the company has few catalysts upcoming and could face a 12-month cash runway by the end of 2023.
- Read why Seeking Alpha contributor Avisol Capital Partners considers Allogene ( ALLO ) a hold.
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Allogene down 11% following downgrade to underperform at BofA