By Colin Kellaher
Allakos is shedding the bulk of its workforce and scrapping its most advanced product candidate, following the failure of the drug in an early study of patients with the skin condition chronic spontaneous urticaria.
Allakos on Monday said it will pare its staff by 75% to 15 employees and explore strategic alternatives after the drug, AK006, didn't show therapeutic activity in a Phase 1 study.
The San Carlos, Calif., clinical-stage biotechnology company, which ended 2024 with roughly $81 million in cash, equivalents and investments, said it expects to use $34 million to $38 million in cash in restructuring activities to close out AK006 development, and that it will have $35 million to $40 million on hand at the end of June.
Shares of Allakos plunged 71% to 35 cents in premarket trading Monday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
January 27, 2025 07:45 ET (12:45 GMT)
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