Allogene Therapeutics (ALLO) remains attractive given its undemanding valuation and differentiated clinical strategy, RBC Capital Markets said in a note emailed Thursday.
On the large B-cell lymphoma front, management reiterated that the 41% improvement in minimal residual disease, or MRD, conversion is promising, given Breyanzi's 24% conversion rate translated into a 63% reduction in event-free survival, or EFS, event risk, the analysts said.
They added that the trial process is also progressing faster than expected, with 80 sites activated and a target of 100 by year-end 2026. The interim EFS readout remains on track for mid-2027, with full enrollment expected by year-end 2027 across 220 MRD-positive patients.
For inflammation and immunology, dosing is ongoing across 20-milligram, 40-milligram, and 80-milligram cohorts, with potential to go higher, as well as groups with and without lymphodepletion. An update focused mainly on safety and some translational data is expected in Q4, the analysts said.
"Overall, we continue to like the setup given an undemanding valuation and a creative clinical strategy that offers a unique opportunity to run a pivotal trial in earlier-line oncology [versus] watchful waiting," the analysts added.
RBC has an outperform, speculative risk rating and a price target of $9 on Allogene Therapeutics.
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