Allogene Therapeutics Announces Restructuring and Clinical Trial Delays

Allogene Therapeutics, a prominent player in the off-the-shelf CAR-T cell therapy space, has revealed significant operational changes and timeline adjustments for its key clinical programs. The California-based company is implementing cost-cutting measures, including a substantial workforce reduction, while simultaneously addressing delays in its clinical trial milestones.

Workforce Reduction and Financial Strategy

Allogene has announced a 28% reduction in its workforce, following a 22% cut last year. This decision is part of a broader strategy to extend the company's cash runway into the second half of 2027, nearly a year longer than previously projected. The restructuring primarily affects manufacturing operations, as the company believes its current cell therapy inventory is sufficient to meet near-term clinical needs.

An Allogene spokesperson emphasized the challenging macro-environment, stating, "Amid these headwinds, our top priority has been ensuring the resources needed to advance our trio of differentiated clinical programs. We are confident in what we are doing."

Clinical Trial Delays and Adjustments

The company has disclosed delays in two of its clinical programs:

1. The pivotal lymphoma trial's lymphodepletion regimen selection and futility analysis milestone has been pushed back to the first half of 2026, a two-quarter delay.
2. The first update from the phase 1 trial of its autoimmune CAR-T has been rescheduled for the first half of 2026, with the trial now set to begin in mid-2025.

Dr. Zachary Roberts, Chief Medical Officer at Allogene, attributed the lymphoma trial delay to "site-level operational constraints, including staffing shortages and administrative hurdles," which led to slower-than-expected transitions from site activation to patient screening.

Strategic Focus and Potential Partnerships

Allogene is concentrating its resources on advancing two clinical programs to key inflection points. The company has completed enrollment in the expansion cohort of a phase 1b trial of ALLO-316 in liver cancer patients and is preparing for FDA consultation on the registrational path.

CEO David Chang indicated openness to potential partnerships, particularly for the autoimmune program, citing the current market situation. "Protecting the cash runway is the key," Chang stated, emphasizing the company's willingness to consider "reasonable deals" in the current economic climate.