Published on 14 Jan 2024 on Zacks via Yahoo Finance
Shares of Allakos ALLK plunged 60.2% on Tuesday after management announced disappointing results from two mid-stage studies evaluating its lead pipeline drug lirentelimab (AK002) in two inflammatory conditions.
Allakos reported top-line data from two studies — the phase II ATLAS study and phase IIb MAVERICK study — which evaluated lirentelimab in atopic dermatitis (AD) and chronic spontaneous urticaria (CSU) indications, respectively. Both studies failed to achieve their primary endpoints.
Following the two back-to-back study failures, Allakos decided not to pursue further clinical development of lirentelimab. Instead, the company will now shift its focus to its early-stage clinical candidate AK006 and other preclinical candidates in its pipeline. These factors were likely responsible for the significant drop in share price.