ALXO Stock Forecast & Price Target

ALX Oncology Holdings Inc is actively advancing its clinical-stage immuno-oncology pipeline, prominently featuring the CD47 blocker, evorpacept, which is currently undergoing phase 1 and 2 trials and shows promise in enhancing immune response to cancer by counteracting the "don't eat me" signal from cancer cells. The recent expansion of its pipeline with ALX2004, an EGFR-targeting antibody-drug conjugate (ADC), demonstrates a strategic focus on improving safety and efficacy in comparison to existing therapies, particularly in solid tumors like breast and colorectal cancers. Furthermore, early clinical data suggest that the combination of evorpacept with anti-HER2 antibodies yields durable efficacy, enhancing the potential for successful trial outcomes and shareholder value realization.

ALX Oncology Holdings Inc. has experienced a negative shift in its financial outlook due to reduced confidence in its product candidates, particularly in gastric cancer and the need for proof of concept data in additional tumor types. The company reported no revenue for 4Q24, aligning with consensus estimates, yet recorded a net loss of $0.55 per share, which, although better than the consensus estimate of $0.67 per share, indicates persistent financial strain. Furthermore, the heightened risk of FDA rejection for accelerated approval paths, alongside the delayed emergence of significant clinical data until 2026, raises considerable uncertainty about the company's future growth prospects.