ALXO Stock Forecast & Price Target

ALX Oncology Holdings Inc. is advancing its clinical stage with a robust pipeline centered on the promising CD47 blocker, evorpacept, which is currently undergoing phase 1 and 2 trials, demonstrating strong efficacy against cancer cells that utilize CD47 to hide from the immune system. The recent expansion of the pipeline with ALX2004, an EGFR-targeting antibody-drug conjugate (ADC) designed to enhance safety and stability, signals the company’s commitment to innovative cancer therapies and increasing its competitive edge in the market. Furthermore, the encouraging improvements in median progression-free survival (mPFS) observed in their studies, particularly with combination therapies, enhance the outlook for potential market success and patient outcomes, reinforcing the value proposition for investors.

ALX Oncology Holdings Inc. has faced a significant reduction in its probability of success (PoS) in gastric cancer, which negatively impacts the company's financial outlook, particularly since interim data on breast and colorectal cancer are not anticipated until 2026. Additionally, the company has adjusted its peak penetration rate estimate in Head and Neck cancer from 25% to 10%, reflecting increased competitive pressures in the market. The reported lack of revenues for 4Q24, coupled with a net loss per share that, while slightly better than consensus estimates, still underscores the financial vulnerability, especially in light of potential FDA rejections for accelerated approval pathways.