ALLO - Allogene Therapeutics: 2024 Platform Vision Sings Mid-Term Upside

2024-03-31 23:33:42 ET

Summary

• Allogene Therapeutics has announced changes to its pipeline that extend its financial runway into 2026.
• The new ALPHA3 clinical trial for Allogene's Cema-Cel cancer treatment is set to begin in mid-2024, and if successful, investors could see significant returns on their investment.
• The company's Q42023 report evidenced its financial distress. However, the 2024 platform vision, in my opinion, will have a positive impact on its profitability in the midterm.
• Given the lack of short-term revenue catalysts, with clinical trials expected to yield results by the end of 2024, investors will be required to be patient, while experiencing high volatility and potential share dilutions this year.

Based on their latest FY2023 report , I believe the changes announced by Allogene Therapeutics, Inc. ( ALLO ), within their new 2024 platform vision , will have a positive impact on the company's midterm profitability. However, I think investors will be required to exercise some patience during 2024. If the clinical trials -due to start by mid-2024- demonstrate the advantage of AlloCAR-T as a cancer treatment, then I would expect investors will be able to retrieve their long-awaited returns on investment.

This article aims to summarise the status of Allogene's main research programs, including partnerships, their current financial health, my valuation, and risks to investment. Given all, you will be able to understand why I consider this stock as a "hold" at this time, with a view to potentially upgrading it if/when clinical trials deliver good results. Thus, empowering you to make an informed decision when considering investing in Allogene Therapeutics.

Allogene's 2024 Platform Vision

Allogene Therapeutics is a biotechnology company focused on the development of allogeneic chimeric antigen receptor T cells (AlloCAR TTM). In other words, ALLO is utilising molecular biology in order to manufacture, from healthy donors, off-the-shelf chimeric immune cells capable of recognising and eliminating patients' cancerous cells exhibiting specific targets....

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