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Dec 31, 2022

Allogene Q4 2022 Earnings Report

Allogene reported financial results for the fourth quarter and full year 2022 and provided a business update.

Key Takeaways

Allogene Therapeutics reported a net loss of $94.8 million for the fourth quarter of 2022, with $576.5 million in cash, cash equivalents, and investments as of December 31, 2022. The company highlighted progress in its allogeneic CAR T programs, including the initiation of a pivotal Phase 2 trial for ALLO-501A and promising data from its BCMA and CD70 programs.

Initiated the industry’s first potentially pivotal Phase 2 allogeneic CAR T trial, ALPHA2, in Relapsed/Refractory (R/R) Large B Cell Lymphoma (LBCL).

Presented data highlighting industry-leading allogeneic CAR T portfolio.

Ended 2022 with $576 million in cash, cash equivalents and investments.

ALLO-316 demonstrated promising anti-cancer activity in the subset of nine patients with confirmed CD70-positive RCC from the ongoing Phase 1 TRAVERSE trial

Total Revenue
$47K
Previous year: $51K
-7.8%
EPS
-$0.66
Previous year: -$0.54
+22.2%
Stock-Based Compensation
$17.2M
Previous year: $22M
-21.8%
Gross Profit
-$3.26M
Previous year: -$4.19M
-22.2%
Cash and Equivalents
$576M
Previous year: $809M
-28.8%
Free Cash Flow
-$63.8M
Previous year: -$46.2M
+38.2%
Total Assets
$817M
Previous year: $1.04B
-21.3%

Allogene

Allogene

Forward Guidance

Allogene expects a decrease in cash, cash equivalents, and investments of approximately $250 million in 2023. Based on current expectation, the Company expects the cash runway to be sufficient to fund operations into 2025. GAAP Operating Expenses are expected to be approximately $350 million, including estimated non-cash stock-based compensation expense of approximately $90 million. These estimates exclude any impact from potential business development activities.

Positive Outlook

  • Cash runway is expected to be sufficient to fund operations into 2025.
  • Company is making large strides toward giving patients back precious time.
  • Allogene initiated the industry’s first potentially pivotal Phase 2 allogeneic CAR T trial, ALPHA2, in Relapsed/Refractory (R/R) Large B Cell Lymphoma (LBCL).
  • Presented data highlighting industry-leading allogeneic CAR T portfolio.
  • ALLO-316 has demonstrated a generally manageable safety profile with no GvHD

Challenges Ahead

  • Company expects a decrease in cash, cash equivalents, and investments of approximately $250 million in 2023.
  • Gaining access to autologous CAR T therapy and the inevitable wait times associated with manufacturing remain a critical factor for patients.
  • Net loss for the fourth quarter of 2022 was $94.8 million.
  • ALLO-501A trial will enroll approximately 100 patients who have received at least two prior lines of therapy and have not received prior anti-CD19 therapy.
  • TRAVERSE will continue to explore varying cell dose and lymphodepletion regimens, including FC and FCA.