ALLO - Allogene drops on plans for pipeline reorganization

2024-01-05 07:43:11 ET

Allogene Therapeutics ( NASDAQ: ALLO ) fell ~22% premarket Friday after the cell therapy developer announced a pipeline shakeup that it said would cut costs and reduce cash burn.

As part of the strategy named 2024 Platform Vision, the company will deprioritize its mid-stage ALPHA2 and EXPAND trials for its anti-CD19 AlloCAR T candidate, cemacabtagene ansegedleucel (cema-cel).

ALPHA2 and EXPAND were designed to evaluate cema-cel in large B-cell lymphoma (LBCL) in a third-line setting.

Instead, Allogene ( ALLO ) will focus on a pivotal Phase 2 trial called ALPHA3 designed to evaluate cema-cel in LBCL patients who have undergone first-line therapy.

Initial work for ALPHA3 has already started, and the 230-patient study is expected to begin in mid-2024.

The company said that the reorganized pipeline will reduce cash burn and extend its financial runway into 2026. Allogene ( ALLO ) expects to share its 2024 guidance with its Q4 2023 earnings call.

More on Allogene Therapeutics

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• Historical earnings data for Allogene Therapeutics
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