ALX Oncology Restructures to Focus on CD47 Blocker and New ADC Program

ALX Oncology, a biotechnology company specializing in cancer therapeutics, has announced a significant restructuring of its operations. The move aims to concentrate resources on its lead CD47-blocking agent, evorpacept, and advance a new antibody-drug conjugate (ADC) program.

Workforce Reduction and Resource Reallocation

In a strategic decision to extend its cash runway, ALX Oncology is implementing a 30% reduction in its workforce. This cutback primarily affects the company's preclinical research division, as CEO Jason Lettmann explained in a recent update:

"To ensure that the company is strongly positioned to focus on our highest priority programs, we are streamlining our organization and prioritizing resources to execute on our current studies, progress our de-risked anti-cancer antibody combinations for evorpacept, as well as advance our novel ADC into the clinic."

The restructuring is expected to extend ALX's cash reserves into late 2026, a significant improvement from the previous projection that saw funds lasting only into the first quarter of 2025. As of September, the company reported cash reserves of $162.6 million.

Evorpacept's Clinical Progress and Future Trials

Despite mixed results in recent trials, ALX Oncology remains committed to the development of evorpacept. The drug is currently undergoing two phase 2 trials for advanced head and neck squamous cell carcinoma. Although a phase 2 trial in gastric cancer last year did not meet earlier expectations, the company still plans to discuss potential regulatory pathways based on the available data.

Lettmann expressed continued confidence in evorpacept's potential, stating that their "conviction in evorpacept's potential to deepen responses to important available anti-cancer antibody therapies, particularly in patients with HER2-positive cancers, has been strengthened by recent data."

ALX Oncology is now planning to launch additional trials in breast and colorectal cancers, which could "pave additional regulatory paths forward" for evorpacept.

Introduction of ALX2004: A New Antibody-Drug Conjugate

In a move to diversify its pipeline, ALX Oncology has unveiled ALX2004, a novel antibody-drug conjugate. The company plans to seek FDA permission in the coming weeks to initiate clinical studies for this new therapeutic candidate. This development marks an important expansion of ALX's oncology portfolio beyond its CD47-blocking technology.