ALXO

ALX Oncology is a clinical-stage biotech with no product revenue and a lead asset, the CD47 blocker evorpacept, that has generated genuinely interesting signals. In the ASPEN-06 pre-planned exploratory analysis, the retained-HER2-positive/CD47-high gastric subgroup (n=43) showed a 65.0% ORR for Evo-TRP versus 26.1% for TRP, a median PFS of 18.4 vs 7.0 months (HR 0.39) and median OS of 17 vs 9.9 months. That is a real, biomarker-defined efficacy story and the only thing keeping this equity alive. But it is a subgroup of an exploratory analysis in a Phase 2 trial, and the company's second asset, ALX2004, only entered Phase 1 in August 2025 — years and multiple capital raises from any approval.

The balance sheet is the disqualifier. FY2025 cash and equivalents are just $16.4M against operating cash burn of -$84.1M — well under three months of runway on the face of it. Total assets fell 60% to $59.0M, current assets fell 62% to $50.7M, and stockholders' equity collapsed 77% to $26.0M, leaving liabilities/equity at 1.27x and an ROE of -391%. R&D spend was already cut 34% to $77.0M, a sign of a company retrenching to conserve cash rather than accelerating. Retained-deficit stands at -$723M. This is a company that must raise money imminently and repeatedly.