Allakos Inc.: restructuring charge — Allakos halts lirentelimab after Phase 2 failures; cuts workforce 50%, extends cash runway to mid-2026

Allakos Inc.

ATLAS and MAVERICK trials missed primary endpoints (EASI-75 and UAS7 change); lirentelimab development stopped.
Workforce reduced by ~50%; total restructuring costs estimated at ~$30M (majority in H1 2024).
Year-end 2023 cash, equivalents and investments ~$171M; 2024 net cash used in ops $85-90M.
Cash runway extended into mid-2026; focus on AK006 Phase 1 program including CSU and healthy volunteer trials.
Phase 1 AK006 SAD/MAD dosing to complete Q1 2024; CSU patient trial initiation Q2 2024; topline data year-end 2024.

item 2.02 item 2.05 item 7.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

Allakos Inc. announced a restructuring with charges of approximately $30 million (approximately 50%).

Type: restructuring
Charge: approximately $30 million
Headcount: approximately 50%

Exact text from the filing

On January 16, 2024, the Company announced plans to halt development of lirentelimab, the Company’s former lead product candidate, and focus on the clinical development of its AK006 program. As part of the corporate restructuring, the Company is halting lirentelimab-related activities across clinical, manufacturing, research and administrative functions. The Company also committed to reducing its workforce by approximately 50%. The total costs related to halting lirentelimab-related activities and reducing the workforce are estimated to be approximately $30 million, with the majority of these amounts expected to be paid in the first half of 2024.

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Source: SEC EDGAR

accession 0000950170-24-004686

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