Allogene Therapeutics Reports $59.7 Million Net Loss in Q1 2025, Workforce Reduction Implemented

Allogene Therapeutics, Inc. reported a net loss of $59.7 million for the first quarter of 2025, a decrease from the $65.0 million loss recorded in the same period of 2024. The company did not generate any collaboration revenue during the quarter, compared to $22,000 in the prior year. Total operating expenses for the quarter were $65.2 million, down 6% from $69.5 million in the previous year, primarily due to reduced research and development costs, which fell to $50.2 million from $52.3 million. General and administrative expenses also decreased to $15.0 million from $17.3 million.

As of March 31, 2025, Allogene had total assets of $508.0 million, a decline from $548.7 million at the end of 2024. The company's cash and cash equivalents decreased to $42.5 million from $75.2 million, while short-term investments increased to $237.6 million from $217.3 million. The total stockholders' equity also saw a decline, dropping to $385.4 million from $422.2 million. The company had 218.6 million shares of common stock outstanding as of the reporting date.

In terms of strategic developments, Allogene has made significant changes to its workforce, implementing a 28% reduction in employee headcount to focus resources on clinical programs. This decision is expected to incur approximately $3.3 million in severance and related costs, with the majority of these charges anticipated to be realized in the second quarter of 2025. The company also continues to advance its clinical trials, including the pivotal Phase 2 ALPHA3 trial for its lead product candidate, cema-cel, which is designed for patients with large B-cell lymphoma.

Operationally, Allogene is navigating challenges related to patient enrollment in its clinical trials, particularly for the ALPHA3 trial, which requires patients to be screened for minimal residual disease (MRD). The company is also reliant on third-party vendors for critical components of its clinical trials, including the CLARITY MRD assay developed by Foresight Diagnostics. Any delays or issues with these vendors could adversely impact the timelines for Allogene's clinical development programs.

Looking ahead, Allogene anticipates continued operating losses as it invests in research and development to advance its product candidates. The company has indicated that its current cash reserves are expected to fund operations into the second half of 2027, but it recognizes the need for additional capital to support its ongoing clinical programs and operational needs. The company plans to raise funds through equity securities, debt financing, or other sources to implement its business strategy effectively.