Allakos Provides Business Update and Reports Fourth Quarter 2024 Financial Results

Core Insights - Allakos Inc. provided a business update and reported financial results for Q4 2024, highlighting a significant restructuring and cost reduction strategy following the discontinuation of AK006 development [1][10]. Financial Overview - The company ended Q4 2024 with $80.8 million in cash, cash equivalents, and investments, reflecting a net decrease of $11.9 million during the quarter [2][4]. - Research and development expenses decreased to $14.8 million in Q4 2024 from $53.8 million in Q4 2023, a reduction of $39.0 million, primarily due to halting lirentelimab development [5]. - General and administrative expenses were $9.8 million in Q4 2024, down from $11.2 million in Q4 2023, a decrease of $1.4 million [6]. - Allakos reported a net income of $0.4 million in Q4 2024, a significant improvement compared to a net loss of $62.6 million in Q4 2023, mainly due to a $23.9 million gain on a lease amendment [7]. Restructuring and Cash Guidance - The company estimates restructuring costs related to closing out AK006 development will be approximately $34 million to $38 million, with most costs expected to be paid in the first and second quarters of 2025 [3]. - Allakos anticipates having cash, cash equivalents, and investments in the range of $35 million to $40 million by June 30, 2025 [3]. Company Background - Allakos is a clinical-stage biotechnology company focused on developing therapeutics targeting immunomodulatory receptors involved in allergic, inflammatory, and proliferative diseases [8].