Allakos Discontinues AK006 Development, Cuts 75% of Workforce Amid Strategic Restructuring

Workforce Reduction:
Allakos will lay off 75% of its staff, reducing its workforce to approximately 15 employees, following disappointing Phase 1 trial results for AK0061 3.

AK006 Discontinuation:
The company has discontinued further development of AK006 due to lack of efficacy in treating chronic spontaneous urticaria (CSU)1 3.

Strategic Alternatives:
Allakos is exploring strategic alternatives and winding down the AK006 trial1 3.

Restructuring Costs:
The company estimates restructuring costs between $34 million and $38 million, with most costs to be paid out during the first half of 20251 4.

Financial Status:
Allakos expects to have $35 million to $40 million in cash, cash equivalents, and investments by June 30, 20251 4.

Previous Layoffs:
This is the second significant workforce reduction for Allakos, following a 50% cut in January 2024 after the failure of its drug candidate lirentelimab in Phase II trials2 5.