ALX Oncology Reports Q1 2025 Financial Results with $30.8M Net Loss

ALX Oncology Holdings Inc. reported its financial results for the first quarter of 2025, revealing a net loss of $30.8 million, a decrease from the $35.6 million loss recorded in the same period last year. The company’s total operating expenses for the quarter were $31.8 million, down 16% from $37.8 million in the prior year, primarily due to a significant reduction in research and development costs, which fell by 25% to $23.9 million. This decrease was largely attributed to lower clinical and development costs as the majority of manufacturing for clinical trial materials was completed in early 2024.

In terms of liquidity, ALX Oncology reported cash and cash equivalents of $20.6 million as of March 31, 2025, an increase from $17.6 million at the end of 2024. However, total current assets decreased to $102.5 million from $134.4 million, primarily due to a reduction in short-term investments. The company’s accumulated deficit grew to $651.9 million, reflecting ongoing investments in its clinical pipeline, which includes the CD47 blocker evorpacept and the EGFR-targeted antibody drug candidate ALX2004.

Strategically, ALX Oncology has been focusing on advancing its clinical programs. The company is currently conducting multiple Phase 1 and 2 trials for evorpacept, which is designed to enhance the immune response against cancer cells. The company also announced plans to initiate a Phase 1 clinical trial for ALX2004, which is expected to enter human trials soon. Despite these advancements, the company has acknowledged the need for additional capital to support its ongoing research and development efforts, indicating that it may pursue further equity or debt financing.

Operationally, ALX Oncology has seen a shift in its workforce, with a reduction in headcount as part of a strategy to prioritize its clinical pipeline and manage cash flow. The company has also received a notice from Nasdaq regarding non-compliance with the minimum bid price requirement, which could impact its listing status if not addressed within the compliance period. Looking ahead, ALX Oncology anticipates continued losses as it invests in the development of its product candidates, with management expressing confidence that existing capital resources will support operations into late 2026.