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Allogene (ALLO) Q3 Earnings Top Estimates, Pipeline Progresses

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Allogene Therapeutics, Inc. (ALLO - Free Report) incurred loss of 52 cents per share in third-quarter 2020, wider than the year-ago quarter’s loss of 50 cents. The Zacks Consensus Estimate was pegged at a loss of 55 cents.

With no marketed products, the company did not record any revenues during the quarter.

Shares of Allogene were down 2.3% in pre-market trading on Nov 4, following the earnings release. The company’s stock has gained 30% so far this year against the industry’s decrease of 6.4%.

Quarter in Detail

Research & development (R&D) expenses were $51.4 million, up 28.6% from the year-ago quarter. The significant increase was presumably due to higher clinical activities.

General and administrative (G&A) expenses increased 10.7% year over year to $16.6 million.

The company had $1 billion in cash, cash equivalents and investments as of Sep 30, 2020 compared with $1.1 billion as of Jun 30, 2020.

2020 Guidance Maintained

Allogene maintained its guidance for 2020. The company expects full-year loss to be in the range of $260-$280 million.

Pipeline Update

Allogene has four pipeline candidates in early-stage of development, including three CAR T cell product candidates — UCART19, ALLO-501, ALLO-501A and ALLO-715 — and a monoclonal antibody (mAB), ALLO-647. Please note that the company utilizes ALLO-647 as part of its differentiated lymphodepletion regimen in clinical studies evaluating ALLO-501 or ALLO-715

A phase I study — UNIVERSAL — is evaluating ALLO-715 in combination with ALLO-647 in patients with relapsed/refractory multiple myeloma (r/rMM). Initial data from the study will be presented at a medical meeting later this year. The company will file an investigational new drug application for initiation of a clinical study to evaluate ALLO-715 in combination with SpringWorks Therapeutics’ (SWTX - Free Report) late-stage candidate, nirogacestat, as a potential treatment for r/rMM, by the year-end.

Allogene Therapeutics, Inc. Price, Consensus and EPS Surprise

Allogene Therapeutics, Inc. Price, Consensus and EPS Surprise

Allogene Therapeutics, Inc. price-consensus-eps-surprise-chart | Allogene Therapeutics, Inc. Quote

Zacks Rank and Stocks to Consider

Allogene currently has a Zacks Rank #3 (Hold).

A couple of better-ranked stocks from the biotech sector include Emergent Biosolutions (EBS - Free Report) and Horizon Therapeutics (HZNP - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Emergent Biosolutions’ earnings per share estimates have moved up from $6.17 to $8.42 for 2021 in the past 60 days. The company delivered an earnings surprise of 127.41%, on average, in the last four quarters. The stock has risen 72% so far this year.

Horizon Therapeutics’ earnings per share estimates have increased from $4.29 to $4.54 for 2021 in the past 30 days. The company delivered an earnings surprise of 50.76%, on average, in the last four quarters. The stock has surged 102.9% so far this year.

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