ALLO Stock Hits 2-Year Highs – Analyst Calls Allogene’s Phase 2 Trial Data To Treat Lymphoma A ‘Home Run’

• The interim data showed that cancer DNA levels dropped by 97.7% in the Cema-Cel group, while rising by 26.6% in the observation group.
• Allogene said the trial is ongoing across more than 60 sites and aims to enroll about 220 patients by 2027.
• TD Cowen maintained a ‘Buy’ rating for Allogene, according to The Fly. 

Shares of Allogene Therapeutics, Inc. (ALLO) surged more than 50% on Monday to their highest level in over two years after the company delivered strong interim lymphoma trial results, prompting TD Cowen to hail the data as a “home run.”

ALLO shares registered their sharpest ever intraday gains on Monday.

Trial Data Shows Significant Drop In Cancer DNA Levels

In the Phase 2 ALPHA3 trial, after 24 patients reached the Day 45 assessment, 58.3% of those treated with Cema-Cel had no detectable disease, compared to 16.7% in the observation group. At the same time, cancer DNA levels dropped sharply by 97.7% in the Cema-Cel group, while rising by 26.6% in the observation group.

The company said these early results suggest Cema-Cel could be a promising option for high-risk patients after initial treatment. Crucially, the treatment was generally well tolerated, with no serious side effects commonly linked to CAR T therapies, such as cytokine release syndrome or neurotoxicity.

The trial is ongoing across more than 60 sites and aims to enroll about 220 patients by 2027. If results remain positive, the company expects to move toward regulatory approval.

TD Cowen stated that the company’s 41.6% absolute difference in minimal residual disease (MRD) clearance “comfortably” exceeds the 25%-plus bar. The firm said the data increases its confidence in the study’s ability to show a 50% statistically significant event-free survival (EFS) benefit. The firm kept a ‘Buy’ rating on Allogene shares.

How Did Retail Traders React?

Retail sentiment on Stocktwits remained in the ‘extremely bullish’ territory, amid ‘extremely high’ message volumes.

One user said that even with dilution, the stock could climb to $8. It is currently trading around $4.1.

Another user said that if the stock hit $4.80, it could go parabolic.

Year-to-date, the stock has gained more than 196%.

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