Allakos Inc. (ALLK), Monday announced disappointing topline results from its phase 1 clinical trial, evaluating AK006 in adult patients with moderate-to-severe chronic spontaneous urticarial.
During the trial, the 34 enrolled patients were randomized to receive 720 mg of intravenous AK006 or placebo once every four weeks.
The biotechnology company revealed that AK006 failed to demonstrate therapeutic activity in chronic spontaneous urticarial, forcing it to discontinue AK006-related activities across clinical, manufacturing, research and administrative functions.
Allakos has also planned to reduce its workforce by 75 percent, while retaining around 15 employees to explore strategic alternatives, maintain regulatory as well financial requirements, and wind-down the phase 1 clinical trial.
The California-based company estimates that restructuring activities to close AK006 development will cost around $34 million to $38 million, with a major portion of these payments paid over in the first and second quarters of 2025.
Notably, the company sees cash, cash equivalents, and investments of nearly $35 million to $40 million on June 30, 2025.
In the pre-market hours, Allakos's stock is trading at $0.31, down 74.80 percent on the Nasdaq.
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