Allogene's IPO: What You Need To Know

Allogene Therapeutics is set to begin trading on the Nasdaq Stock Exchange under the ticker symbol “ALLO.” The stock is expected to debut Thursday, Oct. 11, although an official IPO date has not yet been released.

The Details

San Francisco-based Allogene intends to raise $288 million with the sale of roughly 16 million shares at a price range of $16 to $18 per share. Some of the company’s main underwriters are Goldman Sachs & Co., JPMorgan, Cowen and Jefferies, according to its S-1 filing.

Allogene on Wednesday announced it priced 18 million shares at $18 per share.

This IPO will give the company a fully diluted market value of over $2 billion, in addition to an enterprise value exceeding $1 billion, according to a recent report by Renaissance Capital. Since the company’s start, operations have been heavily financed by the sale of convertible preferred stock, totaling roughly $149.3 million, according to the note.

The Company

Founded in 2017, Allogene has disrupted the biotech industry with its anti-cancer products and experienced management team. Started by former Kite Pharma executives, Arie Belldegrun and David Cheng, the company hit the ground running in the development of CAR-T therapy products.

This executive duo has already aided in the development of the FDA approved CAR-T product Yescarta. The clinical stage company aims to further develop a pipeline of off-the-shelf T cell product candidates, according to its S-1 filing.

“Our engineered T cells are allogeneic, meaning they are derived from healthy donors for intended use in any patient, rather than from an individual patient for that patient’s use, as in the case of autologous T cells. We believe this key difference will enable us to deliver readily available treatments faster, more reliably, at greater scale, and to more patients.”

What’s Next

Allogene’s UCART19 is being studied in clinical trials in patients with B-cell precursor acute lymphoblastic leukemia. The company anticipates registrational trials by 2019, along with plans to file an application with the Food and Drug Administration.

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