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ALLO Nasdaq· Allogene Therapeutics Inc.
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ALLO Nasdaq· Allogene Therapeutics Inc.
Earnings report Q3 2023

ALLO Reports Decrease in Collaboration Revenue in Latest Quarter

Segments of Revenue

In the latest quarter, ALLOGENE THERAPEUTICS, INC. reported collaboration revenue of $43 thousand, a decrease from $49 thousand in the same quarter last year. For the nine months ended September 30, 2023, collaboration revenue amounted to $139 thousand, compared to $196 thousand in the prior year period. The company's revenue has been exclusively generated from its collaboration and license agreement with Allogene Overland Biopharm (PRC) Co., Limited.

Strengths

Despite the decrease in collaboration revenue, ALLOGENE THERAPEUTICS, INC. continues to enroll participants in the potentially pivotal Phase 2 ALPHA2 trial of ALLO-501A in relapsed/refractory large B cell lymphoma. The company received regulatory approvals to expand the trial to include European and Australian clinical trial sites during the third quarter of 2023. This expansion may lead to increased revenue opportunities in the future.

Challenges

ALLOGENE THERAPEUTICS, INC. faced a decline in collaboration revenue in the latest quarter. The decrease in revenue could be attributed to various factors, such as the timing and completion of performance obligations under the collaboration and license agreement with Allogene Overland Biopharm (PRC) Co., Limited. The company acknowledges that it expects to continue incurring net losses for the foreseeable future, and research and development expenses, as well as general and administrative expenses, are anticipated to increase.

Noteworthy

ALLOGENE THERAPEUTICS, INC. had an accumulated deficit of $1.5 billion as of September 30, 2023. The company had $497.7 million in cash and cash equivalents and investments, providing a cash runway to fund operations into the second half of 2025. It is worth mentioning that the company received regulatory approvals to expand the ALPHA2 trial to include European and Australian clinical trial sites, indicating progress in its clinical development efforts.

Summary

ALLOGENE THERAPEUTICS, INC. reported a decrease in collaboration revenue in the latest quarter. However, the company continues to make progress in its clinical development efforts, enrolling participants in the Phase 2 ALPHA2 trial and expanding the trial to additional clinical trial sites. ALLOGENE THERAPEUTICS, INC. faces challenges in incurring net losses and increasing expenses, but its strong cash position provides a runway for operations. Overall, the company's financial performance reflects a mix of strengths and challenges as it strives to advance its therapeutic programs.

Source documents

Form 10-Q  filed on Nov 02, 2023
16 pages scanned

Reference data

Company financials Q3 revenue -44k
Analyst estimates Q3 EPS missed by -1.79%
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