Allogene Therapeutics Reports 6% Increase in Net Loss, $403M Cash Reserves in Latest Quarter

Allogene Therapeutics, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, focused on developing genetically engineered allogeneic T cell therapies for cancer and autoimmune diseases, experienced a net loss of $66.3 million for the third quarter, compared to a net loss of $62.3 million in the same period of 2023, marking a 6% increase in losses. For the nine months ended September 30, 2024, the net loss was $197.7 million, an improvement from a net loss of $241.5 million in the prior year, reflecting an 18% reduction in losses.

Total operating expenses for the third quarter of 2024 were $71.8 million, up from $63.0 million in the previous year, driven by increased research and development costs. Research and development expenses decreased slightly to $44.7 million from $46.0 million year-over-year. General and administrative expenses also saw a minor decline, totaling $16.3 million compared to $17.0 million in Q3 2023.

The company reported no collaboration revenue for the third quarter, a significant drop from $22,000 in the same period last year. This decline reflects a strategic shift as Allogene prioritizes its clinical programs, particularly the pivotal Phase 2 trial (ALPHA3) for its lead product candidate, cemacabtagene ansegedleucel (cema-cel), targeting large B-cell lymphoma.

As of September 30, 2024, Allogene's cash and cash equivalents stood at $403.4 million, down from $459.1 million at the end of 2023. The company anticipates that its current cash reserves will be sufficient to fund operations for at least the next 12 months. The company has also recognized a cumulative net loss of $1.76 billion since its inception.

Strategically, Allogene implemented a workforce reduction of approximately 22% in January 2024 to conserve cash and focus on core clinical programs. This restructuring resulted in severance costs of about $2.9 million. Additionally, the company recorded long-lived asset impairment charges totaling $15.7 million for the nine months ended September 30, 2024, primarily due to adjustments in expected sublease rental income.

Allogene continues to navigate a complex regulatory landscape, with ongoing clinical trials and collaborations, including a recent amendment to its agreement with Servier, expanding its licensed territory to include the European Union and the United Kingdom. The company remains focused on advancing its product candidates while managing operational and financial challenges.