Allakos Inc. Reports Significant Financial Decline, Net Loss in Latest Quarter

Allakos Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decrease in cash and cash equivalents, which fell to $10.4 million from $66.4 million at the end of 2023. Total current assets also declined to $97.2 million, down from $179.9 million, while total assets decreased to $124.4 million from $243.6 million. Conversely, total current liabilities were reduced to $16.0 million from $36.6 million, leading to a decrease in total stockholders’ equity to $72.7 million from $168.8 million.

For the three months ended September 30, 2024, Allakos reported total operating expenses of $19.8 million, a significant reduction from $48.2 million in the same period of 2023. The loss from operations for this quarter was $(19.8 million), compared to $(48.2 million) a year earlier. The net loss for the quarter was $(18.4 million), down from $(45.6 million) in the prior year, while comprehensive loss also decreased to $(18.0 million) from $(45.5 million).

For the nine months ended September 30, 2024, total operating expenses were $121.5 million, slightly lower than $131.1 million for the same period in 2023. The net loss for this period was $(116.2 million), compared to $(123.2 million) in 2023. The company reported a basic net loss per share of $(1.31) for the nine months, down from $(1.42) in the previous year.

Allakos has implemented a 2024 Reorganization Plan, resulting in a workforce reduction of approximately 50% due to unfavorable clinical trial results for its product lirentelimab (AK002), which the company has since discontinued. The company recorded a $27.3 million impairment charge related to long-lived assets during the nine months ended September 30, 2024.

The company’s advanced product candidate, AK006, is currently in clinical trials, with positive results reported for both intravenous and subcutaneous formulations. Allakos anticipates additional operating losses as it continues product development and seeks regulatory approval. As of September 30, 2024, the company had cash, cash equivalents, and investments totaling $92.7 million, which it expects will fund operations for at least the next 12 months. However, it acknowledges the need for additional capital to support ongoing development efforts.