Nasdaq:ALLO
Allogene Therapeutics, Inc.
A pre-revenue clinical-stage biotech firm developing allogeneic CAR-NK cell therapies to provide scalable, off-the-shelf treatments for blood cancers.
Key Metrics
Investment Thesis
Bull Case
Investors might consider this stock for exposure to the high-growth potential of allogeneic cell therapy and Allogene's unique manufacturing platform that could revolutionize blood cancer treatments. If clinical trials succeed, the company's diverse pipeline offers substantial upside as it transitions from a cash-burning biotech to a revenue-generating therapeutic provider.
Bear Case
The stock carries extreme risk given the complete absence of revenue and a massive retained earnings deficit of -$1.82B following three consecutive years of negative net income. Without immediate access to significant capital markets or a strategic acquisition, the company faces a high probability of dilution or insolvency as it continues to burn through its remaining cash reserves.
About Allogene Therapeutics, Inc.
Allogene Therapeutics is a clinical-stage biotechnology company focused on developing allogeneic cell therapies, including CAR-NK cells, to treat hematologic malignancies. Operating primarily in the United States, the company leverages a diverse manufacturing platform to produce off-the-shelf cellular immunotherapies for various cancer indications.
Analysis
Management Discussion
Management has maintained high levels of R&D investment at $192.3M in 2024, reflecting a continued strategy of advancing multiple clinical programs despite operating losses exceeding $257M. While financing activities generated $116.7M in cash flow, the net decrease in cash of $7.9M suggests that current burn rates remain aggressive relative to available liquidity.
Industry Overview
The cellular and gene therapy industry is experiencing rapid growth driven by advancements in CAR-T and allogeneic cell therapies, offering the potential for curative treatments for previously incurable cancers. However, this sector remains capital-intensive with high failure rates in clinical trials, requiring significant venture capital and public market funding to reach commercialization.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $243.0K | $95.0K | $22.0K |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $243.0K | $95.0K | $22.0K |
| Operating Expenses | $335.7M | $327.8M | $273.2M |
| Operating Income | $-335.4M | $-327.7M | $-273.2M |
| R&D | $256.4M | $242.9M | $192.3M |
| G&A | $79.3M | $71.7M | $65.2M |
| Stock-Based Comp | $83.6M | $66.0M | $51.7M |
| D&A | $14.3M | $14.2M | $13.6M |
| Depreciation | $14.3M | $14.2M | — |
| Amortization | $0 | — | — |
| Other OpEx | $0 | $13.2M | $15.7M |
| Non-Operating Income | $0 | $0 | $16.1M |
| Pre-Tax Income | $-335.4M | $-327.7M | $-257.1M |
| Income Tax | $0 | $0 | $443.0K |
| Continuing Ops | $-335.4M | $-327.7M | $-257.6M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-332.6M | $-327.3M | $-257.6M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-332.6M | $-327.3M | $-257.6M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $528.8M | $459.1M | $303.4M |
| Cash & Equivalents | $61.9M | $83.2M | $75.2M |
| Prepaid Expenses | $11.5M | $10.4M | $10.9M |
| Other Current Assets | $455.4M | $365.5M | $217.3M |
| Long-Term Assets | $288.3M | $183.7M | $245.3M |
| PP&E (Net) | $112.8M | $99.5M | $86.1M |
| Operating Leases | $83.6M | $63.7M | $45.2M |
| Other LT Assets | $91.8M | $20.5M | $114.1M |
| Total Assets | $817.1M | $642.8M | $548.7M |
| Current Liabilities | $54.5M | $37.1M | $35.5M |
| Accounts Payable | $13.9M | $5.9M | $5.4M |
| Current Leases | $6.0M | $6.8M | $7.5M |
| Deferred Revenue | $885.0K | $86.0K | — |
| Other Current Liab | $33.7M | $24.3M | $22.6M |
| Long-Term Liabilities | $96.7M | $93.5M | $91.0M |
| LT Operating Leases | $95.1M | $88.3M | $83.2M |
| Other LT Liab | $1.6M | $5.2M | $7.8M |
| Total Liabilities | $151.2M | $130.6M | $126.5M |
| Shareholders' Equity | $665.9M | $512.2M | $422.2M |
| Retained Earnings | $-1.24B | $-1.56B | $-1.82B |
| AOCI | $-9.9M | $-955.0K | $-89.0K |
| Total L&E | $817.1M | $642.8M | $548.7M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-332.6M | $-327.3M | $-257.6M |
| Non-Cash Adjustments | $106.8M | $104.1M | $48.1M |
| Working Capital Changes | $5.3M | $-14.6M | $9.2M |
| Cash from Operations | $-220.5M | $-237.7M | $-200.3M |
| Capital Expenditures | $5.2M | $1.5M | $694.0K |
| Cash from Investing | $106.2M | $163.3M | $75.7M |
| Cash from Financing | $3.0M | $95.7M | $116.7M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-111.4M | $21.3M | $-7.9M |
| Beginning Cash | $183.6M | $72.2M | $93.4M |
| Ending Cash | $72.2M | $93.4M | $85.5M |
Frequently Asked Questions
How does Allogene Therapeutics, Inc. make money?
The company's financial profile indicates a singular focus on research and development for its primary product candidates, with negligible revenue derived from licensing or commercial sales in recent years. Operations are driven by high R&D expenditures for CAR-NK technology development and clinical trial execution rather than diversified product lines.
What are the main risks for ALLO?
The company faces significant financial risk due to its substantial net loss of $257.6M in 2024 and a cash burn rate that has depleted its beginning cash reserves from $93.4M to $85.5M year-over-year. As a clinical-stage biotech with no commercial revenue, Allogene is highly dependent on successful future funding rounds or strategic partnerships to sustain operations. The lack of current product sales exposes the company to market execution risk if clinical trials do not meet endpoints.
What is ALLO's competitive advantage?
Allogene possesses a proprietary, diverse manufacturing platform capable of producing multiple cell lines simultaneously, enabling scalable 'off-the-shelf' therapies that reduce wait times compared to autologous approaches. The company holds intellectual property rights across various allogeneic CAR-NK platforms and indications, providing a potential pipeline advantage in the competitive cellular therapy market.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.