Allogene’s debut beyond expectations

US-based biotech Allogene yesterday made its stock exchange debut
(Nasdaq) and its shares were up over 43% in the first trading day, taking capitalization to $324m (corresponding to a diluted market value? of $22bn). The company was established by scientists Arie Belldegrun and David Chang, who had already created the biotech Kite, which made its debut in 2014 with an IPO of $17 per share and was sold three years later to Gilead at $180 per share. The new firm focuses on the same sector as Kite did, that is developing cancer therapies based on CAR-T receptors. However, Kite’s technology included submitting cancer patients’ immune cells to reprocessing, whereas Allogene has developed its own CAR-T technology, requiring injections of new immune cells taken from healthy individuals. In addition to funders, who together hold 7.6% of shares, Allogene’s shareholders include Gilead and Pfizer (25%).

(Source: WSJ)