Allakos(US:ALLK)2025-05-07 20:02Financial Performance - For the three months ended March 31, 2025, the company reported a net loss of $26.2 million, compared to a net loss of $71.1 million for the same period in 2024, indicating a significant reduction in losses year-over-year[88]. - Net loss for Q1 2025 was $26.2 million, significantly improved from a net loss of $71.1 million in Q1 2024[115]. - Total operating expenses decreased to $26.7 million in Q1 2025 from $73.1 million in Q1 2024, a decrease of $46.4 million[110]. - Research and development expenses decreased to $13.5 million for Q1 2025 from $34.8 million in Q1 2024, a reduction of $21.3 million[110]. - General and administrative expenses increased to $13.2 million in Q1 2025 from $10.9 million in Q1 2024, an increase of $2.3 million[110]. - Net cash used in operating activities was $28.4 million for Q1 2025, down from $32.5 million in Q1 2024[123]. - Net cash provided by investing activities was $33.4 million in Q1 2025, compared to $9.0 million in Q1 2024[125]. - Interest income decreased to $0.7 million in Q1 2025 from $2.0 million in Q1 2024, primarily due to a lower balance of investments[113]. Financial Position - As of March 31, 2025, the company had cash, cash equivalents, and investments totaling $55.2 million, which is expected to fund operations for at least the next 12 months[91]. - The company has incurred an accumulated deficit of $1,260.5 million as of March 31, 2025, reflecting ongoing financial challenges[88]. - Cash, cash equivalents, and investments totaled $55.2 million as of March 31, 2025, sufficient to fund operations for at least the next 12 months[116]. Strategic Initiatives - The company plans to reduce its workforce by approximately 75% under the 2025 Reorganization Plan to align with strategic alternatives and reduce operating costs[89]. - The company has implemented a 2024 Reorganization Plan, which included a workforce reduction of approximately 50% and the termination of its San Carlos Lease[90]. - The company continues to explore strategic alternatives, including potential mergers, asset divestitures, and licensing opportunities to maximize stockholder value[86]. - The Merger Agreement with Concentra Biosciences is expected to close in May 2025, pending satisfaction of closing conditions, with an offer price of $0.33 per share[85]. Development Programs - The company announced the discontinuation of the AK006 development program following a Phase 1 clinical trial that did not demonstrate therapeutic activity[86]. Asset Impairment - The company recognized a long-lived asset impairment charge of $27.3 million during the three months ended March 31, 2024, due to a significant decline in stock price[103]. - No impairment charges were recognized in Q1 2025, contrasting with $27.3 million in impairment charges in Q1 2024[112]. Capital Raising - The company has filed two shelf registration statements with the SEC, allowing for the potential sale of up to $250 million in common stock[118][119].