By Colin Kellaher
Allakos shares collapsed on Monday after the clinical-stage biotechnology company threw in the towel on its AK006 product candidate and said it would slash its workforce by 75%.
Shares of Allakos were recently down 77% to 27 cents, changing hands at their lowest level since the San Carlos, Calif., company went public in 2018.
Allakos said it is ending further development of AK006, its most advanced product candidate, after the drug didn't show therapeutic activity in a Phase 1 study in the skin condition chronic spontaneous urticaria.
Allakos said it plans to explore strategic alternatives, adding that it expects its cash, equivalents and investments will total $35 million to $40 million by the end of June. The company now sports a market capitalization of around $24 million after the steep drop in its share price.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
January 27, 2025 10:23 ET (15:23 GMT)
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