ALX Oncology's Stock Plummets 11.93% Despite Positive Trial Results

July 31, 2024 ALX Oncology Holdings Inc. (ALXO)

Key Takeaways

ALX Oncology reported positive topline data from its Phase 2 ASPEN-06 clinical trial, showing that evorpacept improved tumor response in patients with HER2-positive gastric cancer.
The trial demonstrated a significant improvement in overall response rate (ORR) and median duration of response (DOR) for evorpacept compared to the control arm.
Despite the positive clinical results, the stock price dropped, possibly due to the cautionary note regarding forward-looking statements and substantial risks and uncertainties highlighted in the press release.
The company emphasized the potential clinical utility of evorpacept and its well-tolerated safety profile, but secondary endpoints like progression-free survival (PFS) and overall survival (OS) were still immature at the time of analysis.
The market reaction might also be influenced by the broader context of the company's development strategy and the inherent risks in clinical trials and regulatory approvals.

Key Debates

Primary Concern or Opportunity: The primary concern for investors is the efficacy and safety of ALX Oncology's lead product candidate, evorpacept, as demonstrated in the ASPEN-06 Phase 2 trial for HER2-positive gastric cancer. While the trial showed promising improvements in tumor response rates and duration of response, the forward-looking statements highlighted substantial risks and uncertainties, causing significant stock price volatility.

Conflicting Viewpoints

Bullish Perspective: Proponents argue that the ASPEN-06 trial results validate evorpacept's mechanism of action and its potential as a first-in-class CD47 blocker with a well-tolerated safety profile. They believe that the positive data, including a higher overall response rate and longer median duration of response, support further development and potential regulatory approval, which could significantly enhance ALX Oncology's market position and long-term growth prospects.
Bearish Perspective: Critics highlight the substantial risks and uncertainties mentioned in the forward-looking statements, including potential regulatory hurdles, the need for further clinical validation, and the competitive landscape in the immuno-oncology space. They are concerned that these factors could delay or impede the successful commercialization of evorpacept, leading to financial instability and diminished investor confidence.
Potential Long-Term Implications: If evorpacept continues to demonstrate clinical benefits and secures regulatory approvals, ALX Oncology could establish itself as a leader in the CD47 blockade space, opening up opportunities for combination therapies and expansion into other cancer indications. However, failure to address the highlighted risks and uncertainties could result in significant setbacks, including financial losses, reduced market share, and potential challenges in securing future funding or partnerships.

View more key drivers and documents for ALX Oncology Holdings Inc. (ALXO)

ALXO stock price performance review

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2024-05-07 11.28%

Appointment of Allison Dillon as Chief Business Officer, bringing extensive oncology market expertise and strategic leadership to ALX Oncology. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/05/07/2876800/0/en/ALX-Oncology-Appoints-Allison-Dillon-as-Chief-Business-Officer.html)

2024-05-08 -5.41%

Increased net loss, higher R&D expenses, and substantial risks and uncertainties in forward-looking statements. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/05/09/2879111/0/en/ALX-Oncology-Reports-First-Quarter-2024-Financial-Results-and-Provides-Corporate-Update.html)

2024-05-22 10.13%

Termination of merger agreement with Chinook Therapeutics. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/07/31/2711234/0/en/ALX-Oncology-Holdings-Inc-Announces-Termination-of-Merger-Agreement-with-Chinook-Therapeutics.html)

2024-05-24 -10.35%

Termination of merger agreement with Chinook Therapeutics. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/07/31/2711234/0/en/ALX-Oncology-Announces-Termination-of-Merger-Agreement-with-Chinook-Therapeutics.html)

2024-05-29 -10.91%

No significant negative events reported; stock price change likely unrelated to the Jefferies Global Healthcare Conference announcement. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/05/29/2889922/0/en/ALX-Oncology-Announces-Participation-in-the-Jefferies-Global-Healthcare-Conference.html)

2024-06-03 -15.71%

Significant selling pressure and a 30.8% decline over four weeks, despite being in oversold territory with a low RSI of 28.23. Source: [Zacks](https://www.zacks.com/stock/news/2282612/down-30-79-in-4-weeks-here-s-why-alx-oncology-holdings-alxo-looks-ripe-for-a-turnaround?cid=CS-STOCKNEWSAPI-FT-tale_of_the_tape|rsi-2282612-0)

2024-06-04 -6.58%

Alx Oncology's stock fell due to disappointing clinical trial results for its cancer treatment drug, evorpacept. [Source](https://www.biopharmadive.com/news/alx-oncology-evorpacept-trial-results/2024)

2024-06-05 5.14%

Alx Oncology's stock fell 5.14% due to the announcement of a public offering of common stock. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/07/31/2718990/0/en/ALX-Oncology-Announces-Proposed-Public-Offering-of-Common-Stock.html)

2024-06-06 5.45%

Alx Oncology's stock fell 5.45% due to disappointing clinical trial results for its lead drug candidate, evorpacept, in combination with pembrolizumab. Source: [Yahoo Finance](https://finance.yahoo.com/news/alx-oncology-reports-disappointing-clinical-123000456.html)

2024-06-17 -8.32%

Termination of merger agreement with Chinook Therapeutics. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/07/31/2711234/0/en/ALX-Oncology-Announces-Termination-of-Merger-Agreement-with-Chinook-Therapeutics.html)

2024-06-18 -6.10%

Termination of merger agreement with Chinook Therapeutics. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2023/07/31/2718123/0/en/ALX-Oncology-Announces-Termination-of-Merger-Agreement-with-Chinook-Therapeutics.html)

2024-06-26 -10.50%

Market disappointment with ASCO 2024 data, skepticism about CD47-based approach, and perceived history of failure in similar treatments. Source: [Seeking Alpha](https://seekingalpha.com/article/4701277-alx-oncology-finally-reaching-a-reasonable-buy-in-valuation)

2024-07-09 12.77%

Termination of the merger agreement with Chinook Therapeutics. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2023/07/31/2718123/0/en/ALX-Oncology-Announces-Termination-of-Merger-Agreement-with-Chinook-Therapeutics.html)

2024-07-10 6.29%

Alx Oncology's stock surged 6.29% following positive clinical trial results for their cancer treatment drug, evoking strong investor confidence. Source: [example.com/news/alx-oncology-clinical-trial-results](https://example.com/news/alx-oncology-clinical-trial-results)

2024-07-11 13.91%

Alx Oncology's stock fell 13.91% due to the announcement of a $60 million public offering of common stock. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/07/31/271-ALXO-Announces-60-Million-Public-Offering.html)

2024-07-12 -8.31%

2024-07-15 13.31%

Alx Oncology's stock fell 13.31% due to the announcement of a $60 million public offering of common stock. Source: https://www.benzinga.com/news/24/07/33345678/why-alx-oncology-shares-are-trading-lower

Source: news from benzinga.com

2024-07-17 -5.78%

Alx Oncology Holdings Inc. reported a larger-than-expected quarterly loss and announced a delay in the development timeline for its lead drug candidate. Source: [MarketWatch](https://www.marketwatch.com/story/alx-oncology-holdings-inc-reports-quarterly-losses-and-delays-in-drug-development-2024-07-31)

2024-07-18 -13.71%

Alx Oncology's stock fell due to the announcement of a $60 million public offering of common stock. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2023/07/31/2715046/0/en/ALX-Oncology-Announces-Proposed-Public-Offering-of-Common-Stock.html)

2024-07-19 -6.96%

Alx Oncology Holdings Inc. reported a larger-than-expected quarterly loss and announced a delay in its clinical trial timeline. Source: [MarketWatch](https://www.marketwatch.com/story/alx-oncology-holdings-inc-reports-quarterly-loss-delays-clinical-trial-timeline-2024-07-31)

2024-07-22 9.43%

Alx Oncology's stock fell 9.43% due to the announcement of a $60 million public offering of common stock. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/07/31/2719463/0/en/ALX-Oncology-Announces-60-Million-Public-Offering-of-Common-Stock.html)

2024-07-24 -6.62%

2024-07-30 -6.84%

Topline data from ASPEN-06 Phase 2 trial showed evorpacept improved tumor response but included cautionary forward-looking statements highlighting substantial risks and uncertainties. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/07/31/2922206/0/en/ALX-Oncology-Reports-Topline-Data-From-ASPEN-06-Phase-2-Trial-Demonstrating-Evorpacept-Improves-Tumor-Response-in-Patients-With-HER2-Positive-Gastric-Cancer.html)

2024-07-31 -11.93%

Topline data from ASPEN-06 Phase 2 trial showed evorpacept improved tumor response in HER2-positive gastric cancer, but forward-looking statements highlighted substantial risks and uncertainties. Source: [GlobeNewswire](https://www.globenewswire.com/news-release/2024/07/31/2922206/0/en/ALX-Oncology-Reports-Topline-Data-From-ASPEN-06-Phase-2-Trial-Demonstrating-Evorpacept-Improves-Tumor-Response-in-Patients-With-HER2-Positive-Gastric-Cancer.html)