Friday - H.C. Wainwright analysts have reduced the price target for ALX Oncology (NASDAQ:ALXO) shares to $5 from the previous $25 while maintaining a Buy rating on the stock. The revision comes as ALXO shares have fallen nearly 89% over the past year, currently trading at $1.63, significantly below their 52-week high of $17.82. According to InvestingPro data, the company's market capitalization now stands at approximately $86 million. The adjustment follows the release of final data from ALX Oncology's Phase 2 ASPEN-06 study, which was presented at the 2025 American Society of Clinical Oncology Gastrointestinal Cancers Symposium (ASCO GI) on January 23.
ALX Oncology's ASPEN-06 study evaluates the efficacy of evorpacept (Evo) in combination with trastuzumab, ramucirumab, and paclitaxel (TRP) versus TRP alone in second or third-line HER2+ gastric and gastroesophageal junction cancer patients who have progressed following prior HER2-targeted therapy. The study's data highlighted a strong objective response rate (ORR) in patients treated with the Evo/TRP combination who had confirmed HER2 positivity.
Despite the positive results, H.C. Wainwright has revised its peak penetration rate estimate for evorpacept in the treatment of Head and Neck cancer to 10% from the previous estimate of 25%. This change is attributed to the evolving competitive landscape in the market for cancer therapies.
The new price target of $5 per diluted share reflects the firm's updated expectations for ALX Oncology's market performance. While InvestingPro analysis indicates the company holds more cash than debt and maintains strong liquidity with a current ratio of 4.82, its overall financial health score remains weak. The analysts at H.C. Wainwright have expressed their continued confidence in the company's prospects by upholding the Buy rating, suggesting that they still see potential in ALX Oncology's stock despite the reduced price target. InvestingPro subscribers have access to 8 additional key insights about ALXO's financial position and market outlook.
In other recent news, ALX Oncology Holdings Inc. has reported positive outcomes from its ASPEN-06 Phase 2 clinical trial, demonstrating significant tumor response in patients with HER2-positive advanced gastric cancer using the drug evorpacept. Additionally, the U.S. Food and Drug Administration has granted Fast Track designation for evorpacept as a second-line treatment for this type of cancer. In a bid to attract top talent, the company has also launched the 2025 Inducement Equity Incentive Plan, reserving 1.5 million shares of common stock for issuance in various forms of equity awards.
On the analyst front, Jefferies has downgraded ALX Oncology's stock from 'Buy' to 'Hold', reducing the price target from $12.00 to $2.00. However, Stifel maintained its Hold rating on the company's shares following positive results from a clinical trial involving ALX Oncology's product, evo, and JAZZ Pharmaceuticals' zanidatamab. Other recent developments include the resignation of ALX Oncology's Chief Medical (TASE:PMCN) Officer, Sophia Randolph, who will continue to provide consulting services for up to 18 months. These are just a few of the recent developments at ALX Oncology.
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