Allogene Therapeutics Stock: Navigating Volatility Amid Clinical Progress

Shares of Allogene Therapeutics have demonstrated significant volatility, with a recent 3.6% gain on September 8th starkly contrasting a substantial year-to-date decline of 47.9%. The stock continues to trade notably below both its 50-day and 200-day moving averages, indicating a persistent technical downtrend despite intermittent positive movements. With a market capitalization of $255.16 million, investor sentiment remains fragile.

Financial Position and Market Sentiment

The company’s latest quarterly results, reported on August 13th, 2025, revealed some positive financial developments. Allogene posted a net loss of $50.9 million ($0.23 per share), which came in below the consensus expectation of $0.28 per share. The company maintains a solid cash position with $302.6 million in liquid assets as of the end of the second quarter, providing an operational runway that management expects to extend into the second half of 2027.

Market analysts maintain a cautiously optimistic stance despite the stock’s significant decline this year. The consensus rating remains “Moderate Buy” with an average 12-month price target of $8.44, suggesting substantial potential upside from current levels. This outlook is supported by reduced loss projections for both 2025 and 2026, alongside continued progress in clinical development.

Should investors sell immediately? Or is it worth buying Allogene Therapeutics?

• Q2 Net Loss: $50.9 million (below consensus)
• Cash Position: $302.6 million (as of Q2 end)
• Cash Runway: Until H2 2027
• Price Target (12-month): $8.44
• 2025 EPS Expectation: -$1.28

Oncology Pipeline Developments

Clinical progress forms a critical part of Allogene’s investment narrative. The ALPHA3 study arm evaluating cemacabtagene ansegedleucel (cema-cel) for large B-cell lymphoma is actively enrolling patients across more than 50 sites in the United States and Canada, with international expansion underway. However, a planned futility analysis for this program has been delayed and is now scheduled for the first half of 2026.

Concurrently, the ALLO-316 program for renal cell carcinoma has generated encouraging data. Phase 1B results presented at the ASCO 2025 conference demonstrated a confirmed response rate of 31% in heavily pre-treated patients whose tumors expressed CD70 at levels of TPS ≥50%. The treatment showed durability, with four out of five responders maintaining their response; one patient has shown a sustained response for over twelve months. The company has already aligned with the FDA on a pivotal study design for this asset.

Strategic Expansion into Autoimmune Therapies

Beyond its core oncology focus, Allogene is strategically expanding into new therapeutic areas. The company initiated its RESOLUTION Phase 1 trial for ALLO-329 in rheumatologic diseases during the second quarter of 2025. This program represents a significant strategic move to apply allogeneic CAR-T technology outside of oncology. Initial proof-of-concept data from this study is anticipated in the first half of 2026.