Allogene Therapeutics To Lay Off 22% Of Its Workforce; Stock Down

(RTTNews) - Gene editing company, Allogene Therapeutics, Inc. (ALLO), Friday announced its decision to cut down its workforce by 22% in a move to focus on developing its blood cancer therapy. Following this announcement, the stock plunged 16 percent.

The company has earlier announced that it will no longer focus on its blood cancer therapy Cema-Cel. Currently, it is on its way to developing a new study for the same class of therapy which will focus on patients with blood cancer.

The company said that it estimates an expense of $5 million to $5.5 million related to lay-offs which will be completed by the end of January 2024.

Currently, Allogene's stock is tumbling 16.28 percent to $2.8450 from previous close of $3.39 on the Nasdaq.