ALX Oncology Holdings Inc. reported a non‑GAAP net loss of $0.41 per share for the third quarter of fiscal 2025, with no revenue recorded, consistent with its pre‑revenue status. Cash, cash equivalents and investments stood at $66.5 million as of September 30, 2025, giving the company a runway that extends into the first quarter of 2027.
The earnings miss relative to the consensus estimate of $‑0.37 per share reflects the company’s continued heavy investment in research and development, with R&D expenses falling to $17.4 million from $26.5 million in the same quarter of the prior year. The loss is driven largely by the absence of product sales and the need to fund ongoing clinical trials, a typical pattern for a company in the early stages of drug development.
The company’s flagship program, evorpacept, delivered encouraging data from the ASPEN‑06 trial. Analysis of the study showed a clinically meaningful benefit across all measured outcomes for patients with high CD47‑expressing HER2‑positive gastric cancer treated with evorpacept in combination with trastuzumab, ramucirumab, and paclitaxel. The identification of CD47 as a predictive biomarker strengthens the therapeutic rationale and may accelerate regulatory discussions.
In parallel, the ALX2004 program, an EGFR‑targeted antibody‑drug conjugate, successfully cleared its dose‑1 cohort at 1 mg/kg and is now enrolling the second dose cohort at 2 mg/kg. This milestone demonstrates the safety and tolerability of the platform and positions the company to evaluate dose‑response relationships in a broader patient population.
CEO Jason Lettmann emphasized the significance of the ASPEN‑06 results, stating, “The topline data confirm the robust response that evorpacept can deliver, generating a clinically meaningful impact on key measures of anticancer activity for patients with gastric cancers and continuing to surpass benchmarks in the field.” He also noted optimism for ALX2004, adding, “The favorable toxicity profile and potent anti‑tumor activity give us confidence in the potential success of this approach for EGFR‑positive tumors.”
Market reaction to the earnings announcement was mixed. In pre‑market trading on November 7, the stock gained more than 2.5%, reflecting investor focus on developmental progress. Over the past month, however, the share price has declined by over 39%, indicating broader market concerns about cash burn and the long path to commercialization.
The company did not provide new financial guidance for the next quarter or fiscal year. Management reiterated confidence in its cash runway and the strategic importance of the clinical milestones highlighted in the update. The focus remains on advancing evorpacept and ALX2004 through the clinical development pipeline while maintaining disciplined spending to preserve liquidity.
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