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Allakos Inc. (ALLK) has announced its decision to discontinue the development of its product candidate AK006 following unfavorable clinical trial results in patients with Chronic Spontaneous Urticaria filing.
In January 2025, the company reported that AK006 did not demonstrate therapeutic activity in its Phase 1 clinical trial. As a result, Allakos has launched a strategic review to explore alternatives such as mergers, sales, or licensing agreements.
The company has implemented a restructuring plan to reduce its workforce by approximately 75%, aiming to preserve capital while it explores strategic options. This plan is expected to result in significant cost savings in the upcoming quarters.
Allakos has also entered into an agreement to terminate its lease for its San Carlos, California facility by March 31, 2025. This move is part of the company's efforts to reduce operating expenses.
The company reported a net loss of $115.8 million for the year ended December 31, 2024, compared to a net loss of $185.7 million in the previous year. The decrease in net loss is attributed to reduced research and development expenses and a gain from the lease amendment.
As of December 31, 2024, Allakos had cash, cash equivalents, and investments totaling $80.8 million, which it believes will be sufficient to fund operations for at least the next 12 months.
The company is also evaluating potential strategic transactions that could include mergers, sales, or licensing deals, although there is no assurance that any transaction will be completed.
Allakos is in the process of selling its remaining furniture and lab equipment as part of its exit from the San Carlos facility, with plans to relocate its corporate headquarters to Menlo Park, California.
The company has also announced that it will not pursue further development of lirentelimab, another product candidate, following disappointing clinical trial results in January 2024.
Allakos continues to hold worldwide commercialization rights to its product candidates and is actively seeking strategic alternatives to maximize shareholder value.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Allakos Inc. annual 10-K report dated March 12, 2025. To report an error, please email earnings@qz.com.