Allakos Provides Business Update and Reports Fourth Quarter 2024 Financial Results
Allakos (ALLK) has announced significant operational changes in its Q4 2024 report. The company discontinued development of AK006 following topline data from its Phase 1 study in chronic spontaneous urticaria patients in January 2025. Financial highlights include:
The company ended Q4 2024 with $80.8 million in cash and investments, with projected cash of $35-40 million by June 2025 after restructuring costs of $34-38 million. R&D expenses decreased to $14.8 million from $53.8 million year-over-year, while G&A expenses reduced to $9.8 million from $11.2 million.
Notably, Allakos reported a net income of $0.4 million in Q4 2024, compared to a net loss of $62.6 million in Q4 2023, primarily due to a $23.9 million gain from a lease termination agreement.
Allakos (ALLK) ha annunciato cambiamenti operativi significativi nel suo rapporto del Q4 2024. L'azienda ha interrotto lo sviluppo di AK006 dopo i dati preliminari del suo studio di Fase 1 su pazienti con orticaria spontanea cronica nel gennaio 2025. Risultati finanziari includono:
L'azienda ha chiuso il Q4 2024 con 80,8 milioni di dollari in contante e investimenti, con previsioni di liquidità tra 35-40 milioni di dollari entro giugno 2025, dopo costi di ristrutturazione tra 34-38 milioni di dollari. Le spese per R&D sono diminuite a 14,8 milioni di dollari rispetto ai 53,8 milioni di dollari dell'anno precedente, mentre le spese generali e amministrative sono scese a 9,8 milioni di dollari rispetto agli 11,2 milioni di dollari.
È importante notare che Allakos ha riportato un utile netto di 0,4 milioni di dollari nel Q4 2024, rispetto a una perdita netta di 62,6 milioni di dollari nel Q4 2023, principalmente a causa di un guadagno di 23,9 milioni di dollari derivante da un accordo di risoluzione di un contratto di locazione.
Allakos (ALLK) ha anunciado cambios operativos significativos en su informe del Q4 2024. La empresa interrumpió el desarrollo de AK006 tras los datos preliminares de su estudio de Fase 1 en pacientes con urticaria crónica espontánea en enero de 2025. Aspectos financieros incluyen:
La empresa terminó el Q4 2024 con 80,8 millones de dólares en efectivo e inversiones, con proyecciones de efectivo de 35 a 40 millones de dólares para junio de 2025, después de costos de reestructuración de 34 a 38 millones de dólares. Los gastos de I+D disminuyeron a 14,8 millones de dólares desde 53,8 millones de dólares en comparación con el año anterior, mientras que los gastos generales y administrativos se redujeron a 9,8 millones de dólares desde 11,2 millones de dólares.
Notablemente, Allakos reportó un ingreso neto de 0,4 millones de dólares en el Q4 2024, en comparación con una pérdida neta de 62,6 millones de dólares en el Q4 2023, principalmente debido a una ganancia de 23,9 millones de dólares por un acuerdo de terminación de arrendamiento.
Allakos (ALLK)는 2024년 4분기 보고서에서 중요한 운영 변화를 발표했습니다. 이 회사는 2025년 1월 만성 자발성 두드러기 환자에 대한 1상 연구의 주요 데이터를 바탕으로 AK006 개발을 중단했습니다. 재무 하이라이트는 다음과 같습니다:
회사는 2024년 4분기를 8,080만 달러의 현금 및 투자로 마감했으며, 2025년 6월까지 3,500만에서 4,000만 달러의 현금을 예상하고 있습니다. 이는 3,400만에서 3,800만 달러의 구조조정 비용 이후의 수치입니다. 연구개발(R&D) 비용은 전년 대비 1,480만 달러로 감소했으며, 일반 관리(G&A) 비용은 980만 달러로 줄어들었습니다.
특히, Allakos는 2024년 4분기에 40만 달러의 순이익을 보고했으며, 이는 2023년 4분기의 6,260만 달러 순손실에 비해 개선된 수치입니다. 이는 주로 임대 종료 계약에 따른 2390만 달러의 이익 덕분입니다.
Allakos (ALLK) a annoncé des changements opérationnels significatifs dans son rapport du Q4 2024. L'entreprise a interrompu le développement d'AK006 suite aux données préliminaires de son étude de phase 1 chez des patients atteints d'urticaire chronique spontanée en janvier 2025. Points financiers comprennent :
L'entreprise a terminé le Q4 2024 avec 80,8 millions de dollars en liquidités et investissements, avec des prévisions de liquidités de 35 à 40 millions de dollars d'ici juin 2025 après des coûts de restructuration de 34 à 38 millions de dollars. Les dépenses de R&D ont diminué à 14,8 millions de dollars contre 53,8 millions de dollars l'année précédente, tandis que les dépenses générales et administratives ont été réduites à 9,8 millions de dollars contre 11,2 millions de dollars.
Il est à noter qu'Allakos a déclaré un revenu net de 0,4 million de dollars au Q4 2024, par rapport à une perte nette de 62,6 millions de dollars au Q4 2023, principalement en raison d'un gain de 23,9 millions de dollars provenant d'un contrat de résiliation de bail.
Allakos (ALLK) hat signifikante betriebliche Änderungen in ihrem Bericht für das 4. Quartal 2024 angekündigt. Das Unternehmen hat die Entwicklung von AK006 nach den vorläufigen Daten seiner Phase-1-Studie bei Patienten mit chronischer spontaner Urtikaria im Januar 2025 eingestellt. Finanzielle Höhepunkte umfassen:
Das Unternehmen schloss das 4. Quartal 2024 mit 80,8 Millionen Dollar in Bar und Investitionen ab, mit einer prognostizierten Liquidität von 35 bis 40 Millionen Dollar bis Juni 2025 nach Restrukturierungskosten von 34 bis 38 Millionen Dollar. Die F&E-Ausgaben sanken auf 14,8 Millionen Dollar von 53,8 Millionen Dollar im Vorjahr, während die allgemeinen und Verwaltungskosten auf 9,8 Millionen Dollar von 11,2 Millionen Dollar gesenkt wurden.
Bemerkenswert ist, dass Allakos im 4. Quartal 2024 einen Nettoeinkommen von 0,4 Millionen Dollar berichtete, verglichen mit einem Nettoverlust von 62,6 Millionen Dollar im 4. Quartal 2023, hauptsächlich aufgrund eines Gewinns von 23,9 Millionen Dollar aus einem Mietaufhebungsvertrag.
- Significant reduction in R&D expenses by $39.0 million year-over-year
- Achieved net income of $0.4 million in Q4 2024 versus $62.6 million loss in Q4 2023
- G&A expenses decreased by $1.4 million year-over-year
- $23.9 million gain realized from lease termination agreement
- Discontinuation of AK006 drug development program
- Restructuring costs estimated at $34-38 million
- Cash position expected to decline from $80.8 million to $35-40 million by June 2025
- Significant workforce reduction through restructuring
Insights
Allakos's Q4 2024 results reflect a significant strategic pivot with mixed financial implications. The company has discontinued development of AK006 following Phase 1 data readout and announced a substantial restructuring to preserve capital. This discontinuation of their lead candidate represents a major setback in their product pipeline.
The company reported $80.8 million in cash/equivalents at year-end, but projects this will decline to $35-40 million by mid-2025 after restructuring costs of $34-38 million. This represents a substantial 56% reduction in their cash position within just six months.
While Allakos posted a technical net income of $0.4 million versus last year's $62.6 million loss, this profit was almost entirely due to a $23.9 million one-time gain from a lease termination rather than operational improvements. The company has significantly reduced expenses, with R&D costs dropping 72% from $53.8M to $14.8M year-over-year.
The "exploring strategic alternatives" language suggests the board is considering potential sale, merger, or other significant corporate transactions. Without their lead drug candidate and with rapidly depleting cash, Allakos faces substantial challenges in creating shareholder value moving forward. The restructuring may extend their runway but doesn't address the fundamental pipeline issue after AK006's discontinuation.
SAN CARLOS, Calif., March 12, 2025 (GLOBE NEWSWIRE) -- Allakos Inc. (the “Company”) (Nasdaq: ALLK), a biotechnology company that has been developing antibodies for the treatment of allergic, inflammatory and proliferative diseases, today provided a business update and reported financial results for the fourth quarter ended December 31, 2024.
Recent Allakos Events
- Reported topline data from the Phase 1 study of AK006 in patients with chronic spontaneous urticaria in January 2025.
- Announced in January 2025 that the Company was discontinuing further development of AK006, restructuring operations to reduce costs and exploring strategic alternatives.
Cash Guidance
Allakos ended the fourth quarter of 2024 with
The Company estimates that cash used in restructuring activities to close out AK006 development, including severance and contractual payments to vendors, will be approximately
The Company estimates it will have cash, cash equivalents and investments in a range of approximately
Fourth Quarter 2024 Financial Results
Allakos ended the fourth quarter of 2024 with
Research and development expenses were
General and administrative expenses were
Allakos reported net income of
About Allakos
Allakos is a clinical stage biotechnology company that has been developing therapeutics that target immunomodulatory receptors present on immune effector cells involved in allergy, inflammatory and proliferative diseases.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, but are not limited to, Allakos’ expectations regarding its financial position and guidance, including estimated costs of restructuring activities to close out AK006 development, the timing of payment of such restructuring costs, and estimated ending second quarter 2025 cash, cash equivalents and investments; restructuring activities and plans; and exploration of strategic alternatives. Such statements are based on Allakos’ current views about its plans, intentions, expectations, strategies and prospects only as of the date of this release and are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from those set forth in or implied by such forward-looking statements, including but not limited to: uncertainties related to Allakos’ ability to realize the contemplated benefits of its restructuring activities and related reduction in force; Allakos’ ability to accurately forecast financial results, including restructuring and other costs and expenses; availability of suitable third parties with which to conduct contemplated strategic alternative transactions; whether Allakos will be able to pursue strategic alternative transactions, or whether any transaction, if pursued, will be completed on attractive terms; whether Allakos’ cash resources will be sufficient to fund its foreseeable and unforeseeable operating expenses and capital expenditure requirements; Allakos’ ability to maintain the listing of its common stock on Nasdaq; general economic and market conditions, both domestic and international; risks associated with volatility and uncertainty in the capital markets for biotechnology companies; and other risks. Information regarding the foregoing and additional risks may be found in the section entitled “Risk Factors” in documents that Allakos files from time to time to with the SEC. These documents contain and identify important factors that could cause the actual results for Allakos to differ materially from those contained in Allakos’ forward-looking statements. Any forward-looking statements contained in this press release speak only as of the date hereof, and Allakos specifically disclaims any obligation to update any forward-looking statement, except as required by law. These forward-looking statements should not be relied upon as representing Allakos’ views as of any date subsequent to the date of this press release.
Source: Allakos Inc.
Investor Contact:
Adam Tomasi, President
Alex Schwartz, VP Strategic Finance and Investor Relations
ir@allakos.com
Media Contact:
media@allakos.com
| ALLAKOS INC. UNAUDITED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME AND LOSS (in thousands, except per share data) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Operating expenses | ||||||||||||||||
| Research and development | $ | 14,819 | $ | 53,801 | $ | 79,939 | $ | 150,908 | ||||||||
| General and administrative | 9,837 | 11,182 | 38,822 | 45,148 | ||||||||||||
| Impairment of long-lived assets | — | — | 27,347 | — | ||||||||||||
| Gain on lease amendment | (23,883 | ) | — | (23,883 | ) | — | ||||||||||
| Total operating expenses | 773 | 64,983 | 122,225 | 196,056 | ||||||||||||
| Loss from operations | (773 | ) | (64,983 | ) | (122,225 | ) | (196,056 | ) | ||||||||
| Interest income | 1,104 | 2,382 | 6,450 | 10,347 | ||||||||||||
| Other expense, net | 45 | 50 | (43 | ) | 8 | |||||||||||
| Net income (loss) | 376 | (62,551 | ) | (115,818 | ) | (185,701 | ) | |||||||||
| Unrealized gain (loss) on investments | (198 | ) | 122 | 86 | 334 | |||||||||||
| Comprehensive income (loss) | $ | 178 | $ | (62,429 | ) | $ | (115,732 | ) | $ | (185,367 | ) | |||||
| Net income (loss) per common share: | ||||||||||||||||
| Basic and diluted | $ | 0.00 | $ | (0.71 | ) | $ | (1.30 | ) | $ | (2.14 | ) | |||||
| Weighted-average number of common shares outstanding: | ||||||||||||||||
| Basic | 89,445 | 87,567 | 88,791 | 86,798 | ||||||||||||
| Diluted | 90,400 | 87,567 | 88,791 | 86,798 | ||||||||||||
| ALLAKOS INC. UNAUDITED CONDENSED BALANCE SHEETS (in thousands) | ||||||||
| December 31, | December 31, | |||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 17,753 | $ | 66,440 | ||||
| Investments | 63,067 | 104,354 | ||||||
| Prepaid expenses and other current assets | 4,766 | 9,095 | ||||||
| Total current assets | 85,586 | 179,889 | ||||||
| Property and equipment, net | 10,827 | 33,369 | ||||||
| Operating lease right-of-use assets | — | 24,136 | ||||||
| Other long-term assets | 188 | 6,216 | ||||||
| Total assets | $ | 96,601 | $ | 243,610 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,490 | $ | 1,764 | ||||
| Accrued expenses and other current liabilities | 12,294 | 34,814 | ||||||
| Total current liabilities | 17,784 | 36,578 | ||||||
| Operating lease liabilities, net of current portion | — | 38,215 | ||||||
| Total liabilities | 17,784 | 74,793 | ||||||
| Stockholders’ equity: | ||||||||
| Common stock | 90 | 88 | ||||||
| Additional paid-in capital | 1,312,886 | 1,287,156 | ||||||
| Accumulated other comprehensive gain (loss) | 136 | 50 | ||||||
| Accumulated deficit | (1,234,295 | ) | (1,118,477 | ) | ||||
| Total stockholders’ equity | 78,817 | 168,817 | ||||||
| Total liabilities and stockholders’ equity | $ | 96,601 | $ | 243,610 | ||||
FAQ
What led to Allakos (ALLK) discontinuing AK006 development in January 2025?
How much will Allakos (ALLK) spend on restructuring activities in early 2025?
What is Allakos's (ALLK) projected cash position for mid-2025?
How did Allakos (ALLK) achieve net income in Q4 2024 despite restructuring?
