David Chang, Arie Belldegrun

David Chang, Arie Belldegrun

Shares in South San Francisco-based Allogene Therapeutics Inc. rose nearly 40 percent to $25 at the close of its first day of trading on Oct. 11 after a $324 million initial public offering.

The biotechnology company founded by Los Angeles executives from Santa Monica-based Kite Pharma Inc. secured a valuation of more than $2.5 billion.

Allogene is working to develop a CAR-T cancer immunotherapy that can be pulled from the shelf rather than custom-made for each patient.

The year-old company is led by Arie Belldegrun and David Chang, whose Kite sold to Gilead Sciences Inc. last year for $12 billion.

Health business reporter Dana Bartholomew can be reached at dbartholomew@labusinessjournal.com. Follow him on Twitter @_DanaBart.