Allakos to discontinue further clinical development of AK006, cut workforce 75%

Written by Emily J. Thompson, Senior Investment Analyst

ALLK%

Updated: Jan 27 2025

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Discontinuation of AK006 Development: Allakos has announced a 75% drop in shares after deciding to halt clinical development of AK006 due to lack of clinical benefit observed in patients with chronic spontaneous urticaria (CSU).
Workforce Reduction and Financial Impact: The company plans to reduce its workforce by approximately 75%, retain only 15 employees for essential functions, and estimates restructuring costs between $34M-$38M, while projecting cash reserves to be around $35M-$40M by mid-2025.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.

Allakos to discontinue further clinical development of AK006, cut workforce 75%

About the author

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