Allakos Updates Business and Reports Q2 2024 Financials

SAN CARLOS, Calif., Aug. 07, 2024 - Allakos Inc., a biotechnology company focused on developing antibodies to treat allergic, inflammatory, and proliferative diseases, has released an update on its business activities and financial results for the second quarter of 2024.

Recent Developments at Allakos

Allakos has initiated a randomized, double-blind, placebo-controlled Phase 1 trial of intravenous (IV) AK006 for patients with chronic spontaneous urticaria. Concurrently, the company completed dosing in a similar trial of subcutaneous (SC) AK006 in healthy volunteers. The company has announced the safety, pharmacokinetics (PK), and pharmacodynamic (PD) outcomes from the Phase 1 trial of IV AK006 in healthy subjects. Additionally, preclinical data on mast cell inhibition using AK006 was presented at the 2024 European Academy of Allergy and Clinical Immunology (EAACI) Annual Congress.

Future Milestones

Allakos plans to release the safety, PK, and PD data from the Phase 1 trial of SC AK006 in healthy volunteers in the third quarter of 2024. By the end of 2024, the company aims to report findings from the randomized double-blind, placebo-controlled study of AK006 in patients with chronic spontaneous urticaria.

Financial Status

As of June 30, 2024, Allakos had $123.1 million in cash, cash equivalents, and investments. The company's financial projections, including restructuring activities and estimated cash runway, remain unchanged from January 2024. The company expects these restructuring efforts to extend its cash runway into mid-2026 and anticipates ending 2024 with $81 to $86 million in cash, cash equivalents, and investments. It is estimated that $30 million in closeout, severance, and other costs will be incurred in 2024 due to the discontinuation of the lirentelimab development program. Of this amount, $13 million has been spent within the first half of 2024, including $1 million in the second quarter.

Second Quarter 2024 Financial Performance

In the second quarter of 2024, Allakos experienced a net decrease in cash, cash equivalents, and investments by $16.2 million, culminating in a total of $123.1 million. Research and development expenses for the period were $19.4 million, a decrease from $27.3 million in the same quarter of 2023. This reduction of $7.9 million is attributed to a $2.5 million decrease in contract research and development costs, primarily due to the cessation of the lirentelimab program, a $2.5 million decline in compensation costs, and a $2.9 million reduction in other research and development expenses.

General and administrative expenses were reported at $9.2 million for the second quarter of 2024, compared to $10.5 million for the same period in the previous year, marking a decrease of $1.3 million. This change was due to a $0.7 million reduction in compensation costs and a $0.6 million decrease in other general and administrative expenses.

Overall, Allakos reported a net loss of $26.7 million for the second quarter of 2024, compared to a net loss of $35.1 million in the second quarter of 2023. The net loss per basic and diluted share was $0.30 in Q2 2024, an improvement from $0.41 in Q2 2023.

About Allakos

Allakos is a clinical-stage biotechnology firm committed to developing treatments that target immunomodulatory receptors found on immune effector cells involved in allergy, inflammatory, and proliferative diseases. These treatments aim to directly target disease-causing cells and potentially broadly inhibit inflammatory cells in allergic and inflammatory settings. The company's lead product candidate, AK006, targets Siglec-6, an inhibitory receptor on mast cells, which play a crucial role in inflammatory responses. In preclinical studies, AK006 has shown the ability to provide deep mast cell inhibition and reduce mast cell numbers.

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