ALX Oncology Reports Improved Financials, Net Loss Reduction, and Strategic Developments in Latest 10-Q Filing

ALX Oncology Holdings Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on developing immuno-oncology therapies, particularly its lead candidate evorpacept, has not yet generated any product revenues. As of September 30, 2024, ALX Oncology's cash and cash equivalents stood at $16.1 million, a decrease from $22.4 million at the end of 2023. Total current assets also fell to $155.9 million from $188.7 million, while total assets decreased to $185.7 million from $242.6 million over the same period.

The company reported a net loss of $30.7 million for the third quarter of 2024, a notable improvement compared to a net loss of $51.0 million in the same quarter of 2023. For the nine months ended September 30, 2024, the net loss was $105.7 million, down from $115.3 million in the prior year. This reduction in losses is attributed to a significant decrease in operating expenses, which totaled $32.6 million for the quarter, down 39% from $53.3 million in the previous year. Research and development expenses also saw a decline, dropping to $26.5 million from $45.8 million year-over-year.

The company’s total stockholders’ equity decreased to $136.8 million from $189.7 million at the end of 2023, reflecting the ongoing operational losses. ALX Oncology's accumulated deficit reached $592.0 million as of September 30, 2024.

In terms of strategic developments, ALX Oncology has been actively raising capital to support its operations. The company completed an at-the-market equity offering, generating net proceeds of $29.3 million, and an underwritten public offering in October 2023, which raised approximately $58.9 million. The company has also entered into a loan agreement with Oxford Finance and Silicon Valley Bank, initially drawing $10 million, with the potential for additional borrowings based on development milestones.

Operationally, the company continues to focus on advancing evorpacept through various clinical trials, including Phase 2 studies for gastric and HER2-positive cancers. However, the company faces challenges related to clinical trial enrollment and regulatory approvals, which could impact its future financial performance and ability to generate revenue.

As of September 30, 2024, ALX Oncology had 52,743,104 shares of common stock outstanding, reflecting an increase from 49,951,989 shares at the end of 2023. The company anticipates incurring additional losses as it continues to invest in the development of its product candidates.