Allogene Therapeutics' Q2 Earnings Beat Estimates on Lower R&D Costs

ALLO Stock Performance

Shares of Allogene were up in after-market trading yesterday, likely due to the better-than-expected results.

Year to date, the stock has risen 51% compared with the industry’s nearly 6% growth.

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ALLO's R&D Costs Fall as G&A Spending Rises

R&D expenses were $30.7 million, down 23.5% year over year. In contrast, general and administrative (G&A) expenses rose 45.9% to $20.8 million.

Total operating expenses declined 9.3% to $51.6 million.

ALLO's Cash Position Extends Runway Into 2029

As of June 30, 2026, cash, cash equivalents and investments totaled $423.6 million compared with $266.9 million in the previous quarter. This uptick was due to the completion of a public offering in April that generated gross proceeds of $200.4 million. Based on its June-end liquidity, management expects a cash runway into 2029.

The company maintained operating expenses guidance for full-year 2026 at about $225 million, including non-cash stock-based compensation expense of nearly $35 million.

ALLO Progresses With Lead Pipeline Drug Development

Allogene’s main focus is the pivotal phase II ALPHA3 study, which evaluates the lead drug cema-cel as a potential first-line treatment for patients with newly diagnosed large B-cell lymphoma (LBCL) who are likely to relapse and require further therapy. In April, the company reported an interim futility analysis from the study, showing 58.3% MRD negativity at day 45 in patients treated with cema-cel versus 16.7% with observation. Management reported no treatment-related serious adverse events at the cutoff and said most patients were managed on an outpatient basis.

The company surpassed its 2026 goal of activating more than 80 ALPHA3 sites about six months early. It now expects approximately 100 sites to be active by year-end, with most in the United States and additional locations in Canada, Australia and South Korea. Despite faster site activation, Allogene still expects to provide an interim analysis on the primary endpoint of event-free survival (EFS) in mid-2027.

The ALPHA3 study is expected to randomize about 220 participants, with enrollment anticipated to be completed by year-end 2027.

Allogene Advances ALLO-329 Toward Q4 Readout

The company is also exploring the potential of allogeneic CAR T cell therapies in autoimmune diseases. It is enrolling patients in the phase I basket study (called RESOLUTION) evaluating ALLO-329 across autoimmune indications, including systemic lupus erythematosus, idiopathic inflammatory myopathies and systemic sclerosis.

With enrollment remaining brisk, Allogene expects a clinical and translational data update in the fourth quarter of 2026. Management said the readout should include at least the 20-million, 40-million and 80-million cell-dose cohorts, along with safety, efficacy and translational findings.

ALLO’s Zacks Rank

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

Our Key Picks Among Biotech Stocks

Some better-ranked stocks in the biotech sector are Anika Therapeutics ANIK and Repligen Corporation RGEN, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 30 days, earnings per share (EPS) estimates for Anika Therapeutics have risen from 41 cents to $1.05 for 2026. Over the same period, EPS estimates have increased from 46 cents to 95 cents for 2027. ANIK shares have skyrocketed 129% year to date.

Anika Therapeutics missed on earnings in each of the trailing four quarters, delivering an average surprise of 950%.

Over the past 30 days, estimates for Repligen’s 2026 EPS have increased to $2.06 from $1.99. Over the same period, EPS estimates for 2027 have risen from $2.57 to $2.62. RGEN shares have gained 1% so far this year.

Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%.

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This article originally published on Zacks Investment Research (zacks.com).

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