Allakos falls over 70% after halting development of skin condition drug

Allakos

27/01/2025 13:08

** Drug developer Allakos'  ALLK.O  shares fall 72.7% to 33
cents premarket
    ** Co says its experimental drug, AK006, did not show
clinical benefit in an early-stage trial testing it in patients
with chronic spontaneous urticaria — a skin condition that
causes itching and hives  
    ** As a result, the company has decided to discontinue
further clinical development of AK006
    ** Co also plans to reduce its workforce by 75% 
    ** Co plans to retain about 15 employees to explore
strategic alternatives, maintain compliance with regulatory and
financial reporting requirements, and wind-down the early-stage 
trial
    ** Estimates it will have cash, cash equivalents and
investments in a range of approximately $35 mln to $40 mln at
June 30, 2025
    ** Stock had fallen 55.7% in 2024 

 (Reporting by Sneha S K)
 ((Sneha.SK@thomsonreuters.com;))