Allakos (ALLK) Q4 2024 earnings summary

Executive summary

• Reported topline data from Phase 1 study of AK006 in chronic spontaneous urticaria in January 2025.

• Discontinued further development of AK006, restructured operations to reduce costs, and began exploring strategic alternatives.

Financial highlights

• Ended Q4 2024 with $80.8 million in cash, cash equivalents, and investments, down $11.9 million from the previous quarter.

• Research and development expenses fell to $14.8 million in Q4 2024 from $53.8 million in Q4 2023, mainly due to halting lirentelimab development.

• General and administrative expenses decreased to $9.8 million in Q4 2024 from $11.2 million in Q4 2023.

• Reported net income of $0.4 million in Q4 2024, compared to a net loss of $62.6 million in Q4 2023, primarily due to a $23.9 million gain on lease amendment.

• For the full year 2024, research and development expenses were $79.9 million and general and administrative expenses were $38.8 million.

Outlook and guidance

• Estimated restructuring costs to close out AK006 development are $34–38 million, with most payments in Q1 and Q2 2025.

• Projected cash, cash equivalents, and investments of $35–40 million at June 30, 2025.