Allakos (ALLK) Q3 2024 earnings summary

Executive summary

• Net loss for Q3 2024 was $18.4 million, a significant improvement from $45.6 million in Q3 2023, as the company restructured and halted lirentelimab development, reducing workforce by 50%.

• Ended Q3 2024 with $92.7 million in cash, cash equivalents, and investments; cash runway expected into mid-2026.

• AK006, the lead candidate, advanced in Phase 1 trials for chronic spontaneous urticaria, with positive results and initial CSU patient data expected in early Q1 2025.

Financial highlights

• Research and development expenses decreased to $10.9 million in Q3 2024 from $36.7 million in Q3 2023, mainly due to the halt of lirentelimab.

• General and administrative expenses were $8.9 million in Q3 2024, down from $11.5 million in Q3 2023.

• Net loss per share was $0.21 for Q3 2024, down from $0.52 in Q3 2023.

• Cash, cash equivalents, and investments decreased by $30.4 million during Q3 2024, with $18 million related to exiting lirentelimab.

• Cash reserves are projected to fund operations for at least 12 months, with year-end 2024 cash expected at $81–$86 million.

Outlook and guidance

• No revenue is expected for several years as the company remains in clinical development; additional capital will be required to advance AK006 and other candidates.

• Expenses are expected to decrease in the second half of 2024 due to the reorganization and reduced lirentelimab-related costs.

• Restructuring activities are expected to extend the cash runway into mid-2026.

• Initial data from the CSU cohort of the AK006 Phase 1 trial is anticipated in early Q1 2025.