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1. Like **Merck or Bristol Myers Squibb, but focused on developing drugs that block the CD47 'don't eat me' signal to fight cancer.**

2. Think of it as an **early Genentech, but specifically pioneering therapies that block the CD47 'don't eat me' pathway to treat cancer.**

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• Evorpacept (ALX148): An investigational CD47 blocking therapeutic designed to enhance anti-tumor responses by preventing cancer cells from evading destruction by the immune system.

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ALX Oncology (ALXO) is a clinical-stage biotechnology company focused on developing therapies for cancer. As such, the company does not currently have any commercial products approved for sale on the market.

Consequently, ALX Oncology does not have "major customers" in the traditional sense, as it does not generate revenue from the sale of products to other companies or to individuals. The company's operations are primarily funded through equity financing (investments from shareholders) and, to a much lesser extent, interest income and minor collaboration revenue related to its research and development activities.

While ALX Oncology engages in clinical trial collaborations with other pharmaceutical companies to advance its product candidates, these are partnerships for drug development rather than customer relationships involving the purchase of ALX Oncology's products. For example, ALX Oncology has collaborated with:

• Merck & Co., Inc. (NYSE: MRK) for clinical trials combining ALXO's investigational drug with Keytruda.
• Bristol-Myers Squibb (NYSE: BMY) for clinical trials combining ALXO's investigational drug with Opdivo and Yervoy.

However, these entities are collaborators providing study drugs or support, not customers purchasing ALX Oncology's commercial products. Therefore, ALX Oncology does not currently have major customers that purchase its products.

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Jason Lettmann, Chief Executive Officer

Mr. Lettmann has served as ALX Oncology's Chief Executive Officer since September 2023 and has been a member of its board of directors since April 2020. He previously served as a member of the board from March 2015 to May 2017. Prior to his current role, Mr. Lettmann was a General Partner of Lightstone Ventures from March 2012 to July 2023 and a Partner at Morgenthaler Ventures, a venture capital and private equity firm, since June 2009. He also served as Chief Executive Officer of Promedior Inc., a biotechnology company that was acquired by Roche, from January 2019 to February 2020. Additionally, he was a Vice President at Split Rock Partners, another venture capital firm, from June 2006 to June 2009. Mr. Lettmann has served on the boards of several public and privately held companies, including Ra Pharmaceuticals, which was acquired by UCB. He co-led ALX Oncology's first institutional financing and has been involved with the company for nearly a decade since its founding.

Harish Shantharam, CFA, Chief Financial Officer

Mr. Shantharam has served as Chief Financial Officer since January 2025. He joined ALX Oncology from CymaBay Therapeutics, Inc., where he played a role in guiding the company through its transition to late-stage development and commercial readiness, culminating in its $4.3 billion acquisition by Gilead Sciences, Inc. Earlier in his career, he held various leadership positions at Gilead Sciences, including Vice President and Head of Global Commercial Finance, where he oversaw the financial operations for a global business generating between $20 billion and $30 billion in revenue. Mr. Shantharam brings over 20 years of experience in financial and commercial functions within the biotech and biopharmaceutical industries.

Allison Dillon, Ph.D., Chief Operations Officer

Dr. Dillon has served as Chief Operations Officer since August 2025. Before this, she was the Chief Business Officer, a role she held since joining ALX Oncology in 2024. Dr. Dillon came to ALX Oncology from Calithera Biosciences, where her most recent position was Senior Vice President of Commercial and Portfolio Strategy. Prior to Calithera, she held roles of increasing responsibility in marketing, sales, and pipeline commercialization at Genentech. Earlier in her career, Dr. Dillon worked as a Senior Consultant at the management consulting firm Campbell Alliance.

Barbara Klencke, M.D., Interim Chief Medical Officer

Dr. Klencke has served as ALX Oncology's Interim Chief Medical Officer since September 2025. She was previously a member of the company's board of directors and currently serves as an independent board director for Xencor and TScan Therapeutics. With over 30 years of experience, Dr. Klencke's background includes patient care, academic and scientific research, and clinical drug development in hematology and oncology. Her executive leadership experience spans a range of biotech companies, including Sierra Oncology, Inc. (acquired by GlaxoSmithKline for $1.9 billion), Onyx Pharmaceuticals (acquired by Amgen for $10.4 billion), and Genentech.

Shelly Pinto, Senior Vice President Finance and Chief Accounting Officer

Ms. Pinto has served as ALX Oncology's Senior Vice President Finance and Chief Accounting Officer since August 2023, having previously been Vice President Finance and Chief Accounting Officer since May 2021. Before joining ALX Oncology, she was with Tizona Therapeutics, Inc. from July 2016 to April 2021, where she advanced to Vice President of Finance and Operations. Her earlier experience includes serving as Corporate Controller at InSite Vision Inc. from December 2008 to July 2016, Assistant Controller at Bare Escentuals, Inc. from May 2007 to November 2008, and Director of Corporate Accounting and Financial Reporting at Dreyer's Grand Ice Cream Holdings, Inc. from March 2002 to May 2007. Ms. Pinto began her career in the audit practice at Deloitte and Touche LLP.

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ALX Oncology (ALXO), a clinical-stage biopharmaceutical company, faces several key risks inherent to its business model, primarily revolving around the success of its drug development pipeline and its financial sustainability.

1. Clinical Trial Failure and Regulatory Approval Risk

   As a clinical-stage company, ALX Oncology's business success is heavily dependent on the successful outcome of its ongoing and future clinical trials for its lead product candidate, evorpacept, and other programs. Drug development is a highly uncertain undertaking, and the failure of clinical trials, or the inability to obtain regulatory approvals, would be a major blow to the company. For example, ALX Oncology has previously halted certain anti-CD47 programs (ASPEN-02 and ASPEN-05) due to disappointing efficacy findings where the evorpacept combination did not substantially improve upon historical activity of other agents. The efficacy observed in early-stage trials may not be replicated in later, larger studies, as evidenced by a decline in efficacy in the second half of a Phase II gastric cancer study after initial promising interim results.

2. Need for Additional Capital and Going Concern Risk

   ALX Oncology has a limited operating history and has incurred significant net losses since its inception, with expectations to continue incurring losses for the foreseeable future. The company has no products approved for commercial sale and generates no revenue from product sales, licenses, or collaborations. Therefore, ALX Oncology requires substantial additional capital to finance its operations, and there is a risk that such capital may not be available when needed or only on unfavorable terms. As of June 30, 2025, the company had cash, cash equivalents, and investments of $83.5 million, which it believes will fund operations into the first quarter of 2027. However, continued high cash burn rates from research and development expenses necessitate ongoing funding.

3. Competition and Uncertainty of CD47 Approach

   ALX Oncology's lead candidate, evorpacept, targets CD47, and while it has shown promising early signals in some areas like solid tumors, the anti-CD47 approach in general carries significant risk. Several other companies, including large pharmaceutical firms, have encountered difficulties or discontinued their CD47-blocking programs due to lack of efficacy or toxicity issues, such as Gilead Sciences and AbbVie. This competitive landscape and past setbacks in the CD47 space mean ALX Oncology faces the ongoing challenge of demonstrating the unique additive value and differentiation of evorpacept compared to other anti-cancer agents and competing therapies.

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The ongoing clinical development by Pfizer of its CD47/SIRPα inhibitor, SI-6622 (formerly TTI-622), which is being investigated in overlapping oncology indications with ALX Oncology's lead product candidate, evorpacept. Pfizer's substantial resources and development capabilities represent a clear competitive threat in the emerging CD47 inhibition market.

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ALX Oncology (ALXO) is a clinical-stage biotechnology company developing therapies for various cancers, with its lead product candidates being evorpacept (ALX148) and ALX2004.

The addressable markets for ALX Oncology's main products or services are as follows:

• Evorpacept (CD47 Blocker):

  • Myelodysplastic Syndromes (MDS): The global myelodysplastic syndrome drugs market size was estimated at USD 4.55 billion in 2024 and is anticipated to reach approximately USD 11.17 billion by 2034. The U.S. market accounted for a 30% share of the global market in 2024. Across the top 7 markets (US, EU4, UK, and Japan), the market reached USD 2.4 billion in 2024 and is expected to reach USD 4.8 billion by 2035.

  • Head and Neck Squamous Cell Carcinoma (HNSCC): The global Head and Neck Squamous Cell Carcinoma market was valued at USD 2.35 billion in 2025 and is projected to exceed USD 5.46 billion by 2035. North America is expected to account for a 52% share of this market by 2035. The recurrent head and neck squamous cell carcinoma market across the top 7 markets (US, EU4, UK, and Japan) was valued at USD 1.6 billion in 2024 and is expected to reach USD 3.8 billion by 2035.

  • Gastric Cancer (HER2-positive): The global stomach cancer treatment market size was estimated at USD 5,369.6 million in 2024 and is projected to reach USD 11,194.9 million by 2030. The U.S. stomach cancer treatment market held a 90.5% revenue share of the North American market in 2024. The HER2-positive gastric cancer market in the 7MM (United States, EU4-Germany, France, Italy, and Spain-the United Kingdom, and Japan) is projected to grow significantly from 2024 to 2034.
  • HER2-Positive Breast Cancer: The global HER2-positive breast cancer market size was USD 10.21 billion in 2024 and is expected to reach USD 14.41 billion in 2029. North America was the largest regional market in 2024. The metastatic HER2-positive breast cancer market across the 7MM (US, EU5, and Japan) was approximately USD 2,711.6 million in 2024 and is expected to reach USD 3,108.1 million by 2035.

• ALX2004 (EGFR-targeted Antibody-Drug Conjugate): ALX2004 is an EGFR-targeted Antibody-Drug Conjugate (ADC) for advanced or metastatic solid tumors. The global Antibody Drug Conjugates (ADC) market size was valued at USD 10.77 billion in 2024 and is projected to reach USD 34.32 billion by 2032. North America held the largest revenue share of 52.54% in the global ADC market in 2023.

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Here are 3-5 expected drivers of future revenue growth for ALX Oncology (ALXO) over the next 2-3 years:

1. Advancement and Potential Commercialization of Evorpacept in HER2-Positive Breast Cancer: ALX Oncology is strategically focusing on the development of evorpacept, its lead CD47-targeting immunotherapy, particularly in HER2-positive breast cancer patients with high CD47 expression. The company has updated the Phase 2 ASPEN-Breast study to a CD47/HER2 biomarker-driven, single-arm design, aiming to accelerate enrollment and achieve an interim data readout in Q3 2026. This patient population represents a significant market opportunity, estimated at approximately 20,000 addressable patients and a $2-4 billion market. Successful clinical development and subsequent market approval would be a primary driver of revenue.
2. Launch and Growth of ALX2004: ALX2004, a novel EGFR-targeted antibody-drug conjugate (ADC), is a key pipeline candidate. The company initiated Phase 1 clinical trials for ALX2004 in mid-2025, with initial safety data anticipated in the first half of 2026. ALX Oncology considers ALX2004 a potentially best-in-class ADC for treating EGFR-expressing solid tumors, including non-small cell lung cancer, colorectal cancer, head and neck squamous cell carcinoma, and esophageal squamous cell carcinoma. The successful progression and eventual commercialization of ALX2004 would introduce a new product to the market and generate future revenue.
3. Expansion of Evorpacept into Additional Cancer Indications Driven by Biomarkers: ALX Oncology's strategy emphasizes biomarker-driven patient selection to improve clinical outcomes and development efficiency. Data from the ASPEN-06 trial in gastric cancer highlighted CD47 expression as a key predictive biomarker for a greater response to evorpacept. This insight is guiding their targeted clinical development strategy and supports the potential to pursue evorpacept in other solid tumor and hematologic malignancies where CD47 is broadly overexpressed. Expanding evorpacept's approved indications based on strong biomarker data would broaden its market reach and contribute to revenue growth.
4. Strategic Collaborations and Milestone Achievements: ALX Oncology engages in strategic collaborations, such as the UMBRELLA study with Sanofi evaluating evorpacept in combination with SARCLISA and dexamethasone for multiple myeloma, which has completed its randomized phase and is moving to dose optimization. Such partnerships can provide revenue through upfront payments, milestone achievements upon successful development stages, and potential future royalties or shared profits from commercialization.

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Share Issuance

• ALX Oncology completed its initial public offering (IPO) in July 2020, issuing 9,775,000 shares of common stock for gross proceeds of approximately $185.7 million.
• In December 2020, the company closed a public offering of 2,737,000 shares of common stock, generating approximately $208.0 million in aggregate gross proceeds.
• In October 2023, ALX Oncology completed a public offering of common stock and pre-funded warrants, resulting in gross proceeds of approximately $63.2 million.

Inbound Investments

• In February 2020, ALX Oncology closed a $105 million Series C equity financing with lead investor Vivo Capital and other new and existing investors.
• The company entered into a $100 million loan facility agreement with Oxford Finance and Silicon Valley Bank in October 2022 to support the development of evorpacept.

Outbound Investments

• In October 2021, ALX Oncology acquired ScalmiBio, Inc. for an initial cash payment of approximately $4.5 million, with an additional $2.0 million payment due at the one-year anniversary subject to certain conditions. The acquisition aimed to strengthen its immuno-oncology pipeline with a novel platform and proprietary cytotoxic payloads.

Capital Expenditures

• ALX Oncology reported $116.1 million in research and development expenses for the fiscal year 2022, primarily focused on developing novel immunotherapies targeting the CD47/SIRPα pathway.
• As of December 31, 2024, the company had $131.3 million in cash, cash equivalents, and investments, which were projected to fund operations into the fourth quarter of 2026, supporting ongoing clinical programs.
• The net proceeds from the October 2023 public offering were anticipated to fund the continued clinical development of evorpacept and related clinical trials, as well as for working capital and general corporate purposes.