Allakos down after lead skin disease drug fails studies

Allakos

16/01/2024 12:36

** Allakos Inc's shares  ALLK.O  down 70.1% to 89 cents -
among biggest pct. losers premarket 
    ** Biotech-firm focused on inflammatory disease says the
data from mid-stage studies of its drug to treat patients with
skin diseases did not meet main goal 
    ** Co says it plans to not purse further clinical
development of its potential drug candidate, lirentelimab,
following the disappointing data
    ** Drug developer also separately reports plans to reduce
its workforce by about 50% and focus on development of 
AK006 and additional pre-clinical programs
    ** ALLK ended Q4 2023 with about $171 mln in cash, cash
equivalents
    ** The restructuring activities, following the data, will
extend the cash runway into mid-2026 - ALLK
    ** As of last close, stock had fallen ~63% in the last 12
months 

 (Reporting by Khushi Mandowara in Bengaluru)
 ((Khushi.Mandowara@thomsonreuters.com;))