Baris-Ozer
Allakos (NASDAQ:ALLK) shares fell ~61% premarket Tuesday after the antibody therapeutics company announced plans to reduce its headcount by approximately 50% as it reevaluates the pipeline to extend the cash runway.
As part of the restructuring initiative, the San Carlos, California-based biotech will focus on its Siglec-6-targeting IgG1 monoclonal antibody AK006 and certain other preclinical programs.
However, Allakos (ALLK) will terminate its activities on its lead candidate, lirentelimab, a monoclonal antibody targeting Siglec-8.
“As a result, the Company will reduce its workforce by approximately 50%,” the company said, adding that it expects to incur most of the restructuring expenses in H1 2024.
AK006 is currently in Phase 1 trials for healthy volunteers, with data expected this year. In Q2 2024, the company plans to begin a Phase 1 trial for intravenous AK006 in patients with chronic spontaneous urticaria.
Citing unaudited data, Allakos (ALLK) said its cash, cash equivalents, and investments reached $171M as of the end of last year and projected the figure to reach $81M – $86M by the end of 2024. The restructuring initiative is expected to extend its cash runway into mid-2026.