Allakos Q1 2024 Earnings Report
Key Takeaways
Allakos reported a net loss of $71.1 million for the first quarter of 2024. The company's cash, cash equivalents, and investments totaled $139.3 million, reflecting a decrease of $31.5 million during the quarter. Research and development expenses were $34.8 million, while general and administrative expenses amounted to $10.9 million.
Completed dosing in SAD and MAD cohorts of Phase 1 trial of IV AK006 in healthy volunteers.
Completed dosing in the randomized, double-blind, placebo-controlled subcutaneous (SC) AK006 cohort in healthy volunteers.
Initiated the randomized, double-blind, placebo-controlled Phase 1 trial of IV AK006 in patients with chronic spontaneous urticaria.
Ended the first quarter of 2024 with $139.3 million in cash, cash equivalents and investments.
Allakos
Allakos
Forward Guidance
Allakos’ financial outlook, restructuring activities and estimated cash runway as reported by the Company in January 2024 remain unchanged. The Company reiterates that the restructuring activities will extend the cash runway into mid-2026 and continues to expect to end 2024 with total cash, cash equivalents and investments in the range of $81 to $86 million.
Positive Outlook
- Restructuring activities will extend the cash runway into mid-2026.
- Company expects to end 2024 with total cash, cash equivalents and investments in the range of $81 to $86 million.
- Report safety, pharmacokinetics (PK), and pharmacodynamic (PD) results from the Phase 1 trial of IV AK006 in healthy volunteers, including data to confirm Siglec-6 receptor occupancy in skin biopsy samples in Q2 2024.
- Report safety, PK, and PD results from the Phase 1 trial of SC AK006 in healthy volunteers, including data to confirm Siglec-6 receptor occupancy in skin biopsy samples in Q3 2024.
- Report topline data from the Phase 1 trial of IV AK006 in patients with CSU at year end 2024.
Challenges Ahead
- Estimated $30 million of closeout, severance and other costs will be paid in 2024 in connection with the lirentelimab development program.
- Approximately $12 million of these payments were made in the first quarter of 2024.
- The majority of the remaining approximately $18 million is expected to be made over the second and third quarters of 2024.
- Non-cash impairment charge following the significant sustained decline observed in the Company’s market capitalization.
- Halting of the lirentelimab development program.