Allakos (ALLK) said Monday that its phase 1 trial of AK006 in chronic spontaneous urticaria failed to demonstrate therapeutic efficacy and its development will be terminated immediately.

The company said it plans to cut its workforce by 75% and retain a small team to explore strategic options and ensure regulatory compliance.

The trial, which included 34 patients, showed no meaningful difference in Urticaria Activity Score (UAS7) improvements between AK006 and placebo, with both groups achieving a 9% complete response rate, Allakos said.

Restructuring costs are expected to be around $34 million to $38 million, with most expenses expected to be paid in the first half of 2025, leaving $35 million to $40 million in cash by mid-year, the company added.

Allakos' shares were more than 75% lower in recent premarket activity.