Allakos Announces Q3 2024 Business Update and Financial Results

SAN CARLOS, Calif., Nov. 06, 2024 – Allakos Inc. (Nasdaq: ALLK), a biotechnology firm focused on developing antibodies to treat allergic, inflammatory, and proliferative diseases, has released its financial results for the third quarter ending September 30, 2024, along with a business update.

In recent developments, Allakos has reported findings from its Phase 1 trial of subcutaneous AK006 in healthy volunteers. The results indicate a bioavailability of approximately 77% and an estimated half-life ranging between 12 to 22 days for subcutaneous AK006. Additionally, skin biopsies from treated volunteers demonstrated high receptor occupancy, confirming that AK006 effectively targets skin tissue mast cells. Notably, a 720 mg dose of AK006 achieved 98% receptor occupancy by day 113, hinting at the possibility of less frequent dosing. Both single and multiple doses of intravenous (IV) AK006 and single doses of subcutaneous AK006 up to 720 mg were well tolerated and exhibited a favorable safety profile.

Moreover, Allakos has successfully completed the enrollment of over 30 patients in a randomized, double-blind, placebo-controlled Phase 1 trial of intravenous AK006 for chronic spontaneous urticaria (CSU). Data from this trial are anticipated in early Q1 of 2025.

Looking ahead, Allakos plans to report data from its Phase 1 trial of AK006 in CSU patients in early Q1 of 2025.

Financially, Allakos concluded the third quarter of 2024 with $92.7 million in cash, cash equivalents, and investments. The company maintains its financial guidance and restructuring activities outlined in January 2024, expecting these measures to extend the cash runway into mid-2026. By the end of 2024, Allakos aims to have cash, cash equivalents, and investments within the previously forecasted range of $81 to $86 million. The company has notably exited its lirentelimab development program.

In the third quarter of 2024, Allakos saw a net decrease of $30.4 million in cash, cash equivalents, and investments, with approximately $18 million allocated to exiting the lirentelimab program. Research and development expenses were $10.9 million, a significant reduction from $36.7 million in the same period in 2023. This decrease is primarily attributed to lower contract research and development costs due to the cessation of the lirentelimab program, along with reduced compensation costs and other research and development expenses.

General and administrative expenses also saw a reduction, amounting to $8.9 million in the third quarter of 2024, down from $11.5 million in the third quarter of 2023. This reduction was largely due to decreased compensation costs and other administrative expenses.

Allakos reported a net loss of $18.4 million for the third quarter of 2024, compared to $45.6 million in the same period in 2023. Net loss per share was $0.21, down from $0.52 in the third quarter of the previous year.

Allakos is a clinical-stage biotechnology company dedicated to developing therapies that target immunomodulatory receptors on immune effector cells involved in allergy, inflammatory, and proliferative diseases. By activating these receptors, the company aims to directly target cells involved in disease pathogenesis and potentially achieve broad inhibition of inflammatory cells. Their leading product candidate, AK006, targets Siglec-6, an inhibitory receptor on mast cells, which play a crucial role in the inflammatory response. In preclinical studies, AK006 has shown deep mast cell inhibition and a reduction in mast cell numbers.

For further details, visit Allakos' official website.