On Monday, H.C. Wainwright maintained a Buy rating on Allogene (NASDAQ:ALLO) with a consistent price target of $9.00. The firm's endorsement comes in the wake of new data presented by Allogene at the Society for Immunotherapy of Cancer (SITC) 2024 conference. The updated results were from the TRAVERSE trial, which is exploring the efficacy of ALLO-316 in treating adult patients with CD70+ advanced or metastatic renal cell carcinoma (RCC).
The trial, which included 38 participants who had undergone a median of three prior treatments and had all previously received anti-PD1 and TKI therapies, showcased the potential of Allogene's Dagger technology. According to the presentation, ALLO-316, in combination with standard fludarabine and cyclophosphamide lymphodepletion, showed a 38% objective response rate (ORR) and a 25% complete objective response rate (cORR). Notably, patients with a high CD70 Tumor Proportion Score (TPS) of over 50 exhibited even better results, with a 50% ORR and a 33% cORR.
The safety profile of the treatment was also highlighted, with no grade 3 or higher cytokine release syndrome (CRS) and 18% of patients experiencing neurotoxicity at the specified dose level and cyclophosphamide concentration. The analyst from H.C. Wainwright found these response rates to be highly encouraging, particularly given the advanced stage of the patient population and the results in those with high TPS.
In the context of these findings, H.C. Wainwright reiterated their positive stance on Allogene's stock, seeing the company's Dagger technology as a promising next-generation allogeneic platform. The $9.00 price target reflects the firm's confidence in the potential market performance of Allogene over the next 12 months.
In other recent news, Allogene Therapeutics (NASDAQ:ALLO) has disclosed key details about its financial status and ongoing clinical trials in its Third Quarter 2024 Earnings Call. Despite a net loss of $66.3 million for the quarter, the company has a solid cash balance of $403.4 million and anticipates its cash runway to extend into the second half of 2026.
Furthermore, the company's ALPHA3 trial for cema-cel, which targets large B cell lymphoma, is making progress with over half of the sites activated. Allogene's ALLO-316 has shown a 50% best overall response rate in renal cell carcinoma patients, and ALLO-329, which targets autoimmune diseases, is expected to have an IND filing in Q1 2025.
InvestingPro Insights
To complement the positive outlook from H.C. Wainwright on Allogene's (NASDAQ:ALLO) clinical progress, InvestingPro data offers additional financial context. Despite the company's promising trial results, InvestingPro Tips highlight that Allogene is "quickly burning through cash" and "analysts do not anticipate the company will be profitable this year." This aligns with the pre-revenue stage of many biotech companies focused on research and development.
However, it's not all negative. InvestingPro data shows that Allogene has seen strong returns over the last month (16.23%) and three months (32.76%), suggesting growing investor confidence that may be tied to the positive TRAVERSE trial results. Additionally, an InvestingPro Tip notes that "5 analysts have revised their earnings upwards for the upcoming period," which could indicate improving financial expectations.
For investors considering Allogene's potential, it's worth noting that InvestingPro offers 12 additional tips for a more comprehensive analysis of the company's financial health and market position.
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