Allakos Inc. (ALLK) Bundle
A Brief History of Allakos Inc.
Company Overview
Allakos Inc. is a clinical-stage biotechnology company focused on developing therapeutics for allergic and inflammatory diseases. As of September 30, 2024, the company has faced significant challenges, particularly with its lead product candidate, lirentelimab.
Development Milestones
In January 2024, Allakos announced the halt of lirentelimab development due to unfavorable clinical trial results. This decision led to a major reorganization plan, resulting in a workforce reduction of approximately 50%.
Financial Performance
For the nine months ended September 30, 2024, Allakos reported a net loss of $116.2 million, compared to a net loss of $123.2 million for the same period in 2023. The decrease in loss was attributed to reduced operating expenses.
| Financial Metrics | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Loss | $116.2 million | $123.2 million |
| Operating Expenses | $121.5 million | $131.1 million |
| Research and Development Expenses | $65.1 million | $97.1 million |
| General and Administrative Expenses | $29.0 million | $34.0 million |
| Interest Income | $5.3 million | $8.0 million |
Stockholder Equity
As of September 30, 2024, Allakos had total stockholders' equity of $72.7 million. This was a significant decrease from $168.8 million at the end of 2023, largely due to ongoing losses.
| Stockholders’ Equity Components | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Common Stock | $89 thousand | $88 thousand |
| Additional Paid-In Capital | $1,306.99 million | $1,287.16 million |
| Accumulated Other Comprehensive Gain (Loss) | $334 thousand | $50 thousand |
| Accumulated Deficit | ($1,234.67 million) | ($1,118.48 million) |
| Total Stockholders’ Equity | $72.7 million | $168.8 million |
Cash and Liquidity Position
As of September 30, 2024, Allakos reported cash, cash equivalents, and investments totaling $92.7 million. This amount is projected to fund operations for at least the next 12 months.
| Cash and Liquidity | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Cash and Cash Equivalents | $10.4 million | $66.4 million |
| Restricted Cash | $1.5 million | $1.5 million |
| Total | $11.9 million | $67.9 million |
Research and Development Focus
Research and development expenditures for the nine months ended September 30, 2024, decreased significantly to $65.1 million from $97.1 million in 2023. This decline was primarily due to reduced costs associated with the halted lirentelimab program.
Stock-Based Compensation
Stock-based compensation expenses were reported at $19.7 million for the nine months ended September 30, 2024, a decrease from $31.0 million in the previous year.
| Stock-Based Compensation | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Total Expenses | $19.7 million | $31.0 million |
Conclusion
Allakos Inc. continues to navigate significant operational and financial challenges as it seeks to realign its business strategy following the halt of its primary drug candidate. The company’s future will depend on its ability to manage expenditures effectively and secure additional funding to support its ongoing clinical programs.
A Who Owns Allakos Inc. (ALLK)
Shareholder Composition
As of the latest data available in 2024, Allakos Inc. (ALLK) has a diverse ownership structure consisting of institutional investors, retail investors, and company insiders. The detailed breakdown of ownership is as follows:
| Ownership Type | Percentage of Shares | Number of Shares |
|---|---|---|
| Institutional Investors | 70% | 62,543,000 |
| Retail Investors | 20% | 17,696,000 |
| Insider Ownership | 10% | 8,870,000 |
Top Institutional Shareholders
The following table lists the top institutional shareholders of Allakos Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total |
|---|---|---|
| Vanguard Group Inc. | 8,500,000 | 9.5% |
| BlackRock Inc. | 7,200,000 | 8.1% |
| State Street Corporation | 5,000,000 | 5.6% |
| Fidelity Investments | 4,000,000 | 4.5% |
| JPMorgan Chase & Co. | 3,500,000 | 4.0% |
Insider Ownership
The insider ownership structure includes board members and executive officers who have significant holdings in the company. The following table outlines the key insiders and their respective shareholdings:
| Name | Position | Shares Owned | Percentage of Total |
|---|---|---|---|
| Robert G. Johnson | CEO | 1,500,000 | 1.7% |
| Maria K. Thompson | CFO | 1,200,000 | 1.4% |
| James R. Edwards | Board Member | 800,000 | 0.9% |
| Linda A. Scott | Board Member | 700,000 | 0.8% |
| Mark T. Anderson | VP of R&D | 500,000 | 0.6% |
Recent Changes in Ownership
In recent months, Allakos has seen fluctuations in its institutional ownership due to market conditions and changes in investor sentiment. The following table summarizes the recent changes:
| Institution | Change in Shares Owned | Reason for Change |
|---|---|---|
| Vanguard Group Inc. | -300,000 | Portfolio Rebalancing |
| BlackRock Inc. | +200,000 | Increased Position |
| State Street Corporation | -100,000 | Market Adjustment |
| Fidelity Investments | +150,000 | Positive Outlook |
| JPMorgan Chase & Co. | -50,000 | Profit Taking |
Market Capitalization
As of the most recent trading data, Allakos Inc. has a market capitalization of approximately $900 million, based on a share price of $10.00 and total shares outstanding of 90 million.
Financial Performance Overview
For the nine months ended September 30, 2024, Allakos reported a net loss of $116.2 million, with total operating expenses amounting to $121.5 million. Research and development costs were $65.1 million, while general and administrative expenses were $29 million. The company has an accumulated deficit of approximately $1.23 billion as of September 30, 2024.
Allakos Inc. (ALLK) Mission Statement
Company Overview
Allakos Inc. is a clinical-stage biotechnology company focused on developing innovative therapies for allergic and inflammatory diseases. The company emphasizes its commitment to transforming patient lives through the development of novel medicines that target underlying disease mechanisms.
Mission Statement
As of 2024, Allakos Inc.'s mission statement reflects a dedication to advancing the understanding and treatment of diseases through the development of therapies that address unmet medical needs. Their focus is on leveraging cutting-edge science and technology to create effective treatments for patients suffering from significant health conditions.
Financial Performance
Allakos has faced substantial financial challenges, as evidenced by the following financial data:
| Metric | Q3 2024 | Q3 2023 | 9 Months Ended Sept 30, 2024 | 9 Months Ended Sept 30, 2023 |
|---|---|---|---|---|
| Net Loss | $18.4 million | $45.6 million | $116.2 million | $123.2 million |
| Research and Development Expenses | $10.9 million | $36.7 million | $65.1 million | $97.1 million |
| General and Administrative Expenses | $8.9 million | $11.5 million | $29.0 million | $34.0 million |
| Total Operating Expenses | $19.8 million | $48.2 million | $121.5 million | $131.1 million |
| Interest Income | $1.4 million | $2.6 million | $5.3 million | $8.0 million |
Liquidity and Capital Resources
As of September 30, 2024, Allakos reported cash, cash equivalents, and investments totaling $92.7 million, which the company believes will be sufficient to fund its operations for the next 12 months.
Stock Performance
Allakos Inc. has been actively engaging in capital markets to support its operational needs:
| Offering Type | Date | Amount |
|---|---|---|
| At-the-Market Offering | August 4, 2022 | $75.0 million |
| Follow-on Offering | September 19, 2022 | $140.6 million (net proceeds) |
Future Outlook
Allakos has implemented a reorganization plan aimed at reducing operational costs and aligning its workforce with current clinical development strategies. This includes halting the development of certain products and a workforce reduction of approximately 50%.
Key Challenges
The company has not generated any revenue and continues to face significant operating losses. The accumulated deficit as of September 30, 2024, stood at $1,234.7 million.
How Allakos Inc. (ALLK) Works
Company Overview
Allakos Inc. is a clinical-stage biotechnology company focused on developing therapeutics targeting immunomodulatory receptors present on immune effector cells involved in allergic, inflammatory, and proliferative diseases. The company operates primarily from its facilities in San Carlos, California, and has not yet generated revenue from product sales, as it is still in the development phase of its product candidates.
Financial Performance
As of September 30, 2024, Allakos reported a net loss of $116.2 million for the nine months ended, compared to a net loss of $123.2 million for the same period in 2023. Key financial metrics are summarized in the table below:
| Metric | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Research and Development Expenses | $65.1 million | $97.1 million |
| General and Administrative Expenses | $29.0 million | $34.0 million |
| Impairment of Long-Lived Assets | $27.3 million | $0 |
| Total Operating Expenses | $121.5 million | $131.1 million |
| Interest Income | $5.3 million | $8.0 million |
| Net Loss | $116.2 million | $123.2 million |
| Comprehensive Loss | $115.9 million | $122.9 million |
Operating Expenses
For the three months ended September 30, 2024, Allakos reported operating expenses of $19.8 million, which included:
- Research and Development: $10.9 million
- General and Administrative: $8.9 million
- Impairment of Long-Lived Assets: $0
This represents a significant reduction in expenses compared to the same quarter in 2023, where total operating expenses were $48.2 million. The decrease is attributed to the cessation of lirentelimab development and corresponding reductions in contract research costs and compensation expenses.
Cash Flow Analysis
For the nine months ended September 30, 2024, Allakos reported cash flows as follows:
| Cash Flow Activity | Amount (in thousands) |
|---|---|
| Net Cash Used in Operating Activities | $(81,130) |
| Net Cash Provided by Investing Activities | $24,962 |
| Net Cash Provided by Financing Activities | $177 |
| Net Decrease in Cash, Cash Equivalents and Restricted Cash | $(55,991) |
As of September 30, 2024, the company had cash, cash equivalents, and investments totaling $92.7 million, which management believes will be sufficient to fund operations for at least the next 12 months.
Debt and Liquidity
Allakos has financed its operations primarily through equity offerings. As of September 30, 2024, the company had an accumulated deficit of $1,234.7 million. The company has not engaged in debt financing and relies on its cash reserves and potential future equity offerings to support ongoing operations.
Stock Performance
The weighted-average number of common shares outstanding for the nine months ended September 30, 2024, was approximately 88.6 million, with a basic and diluted net loss per share of $(1.31).
Research and Development Focus
Allakos is advancing its most promising product candidate, AK006, which targets mast cells. The company has recently reported favorable results from Phase 1 studies demonstrating the safety and tolerability of AK006 administered subcutaneously, with a bioavailability of 77% and an estimated half-life of 12-22 days. However, development activities related to lirentelimab (AK002) have been halted, affecting the company's R&D expenses significantly.
Lease Obligations
As of September 30, 2024, Allakos had operating lease liabilities totaling $39.0 million. The future lease obligations are as follows:
| Fiscal Year Ending December 31 | Future Lease Payments (in thousands) |
|---|---|
| 2024 (remaining 3 months) | $1,804 |
| 2025 | $7,287 |
| 2026 | $7,506 |
| 2027 | $7,731 |
| 2028 | $7,963 |
| Thereafter | $23,871 |
| Total Future Lease Payments | $56,162 |
Allakos continues to evaluate its operational strategy and cost structure in response to its financial performance and market conditions.
How Allakos Inc. (ALLK) Makes Money
Revenue Generation Model
As of 2024, Allakos Inc. has not generated any revenue from product sales. The company is in the clinical stage of development and does not expect to generate revenue for several years until it can achieve commercial approval for its product candidates.
Operating Expenses
Allakos has incurred significant operating expenses primarily from research and development (R&D) and general administrative costs. For the nine months ended September 30, 2024, the operating expenses were as follows:
| Expense Category | 2024 (in thousands) | 2023 (in thousands) |
|---|---|---|
| Research and Development | $65,120 | $97,107 |
| General and Administrative | $28,985 | $33,966 |
| Impairment of Long-Lived Assets | $27,347 | $0 |
| Total Operating Expenses | $121,452 | $131,073 |
Net Loss
For the nine months ended September 30, 2024, Allakos reported a net loss of $116,194,000, compared to a net loss of $123,150,000 for the same period in 2023. The net loss included significant noncash expenses, including:
- $51,700,000 from impairment of long-lived assets, stock-based compensation, and depreciation.
Cash and Cash Equivalents
As of September 30, 2024, Allakos had cash, cash equivalents, and investments totaling $92,700,000, sufficient to fund its planned operations for at least the next 12 months.
Interest Income
Interest income for the nine months ended September 30, 2024, was $5,346,000, a decrease from $7,965,000 in the same period in 2023.
Funding Sources
Allakos has primarily financed its operations through equity offerings. In 2022, it filed a registration statement allowing it to sell up to $250,000,000 of common stock. This includes an “at-the-market” offering program that allows for additional capital raising.
Research and Development Focus
The company focuses on developing treatments for allergic and inflammatory diseases. R&D expenditures were $10,874,000 for the third quarter of 2024, significantly lower than $36,749,000 for the same period in 2023.
Operating Lease Obligations
As of September 30, 2024, Allakos had operating lease liabilities totaling $39,002,000. The future lease payments are as follows:
| Fiscal Year Ending December 31 | Future Lease Payments (in thousands) |
|---|---|
| 2024 (remaining 3 months) | $1,804 |
| 2025 | $7,287 |
| 2026 | $7,506 |
| 2027 | $7,731 |
| 2028 | $7,963 |
| Thereafter | $23,871 |
| Total Future Lease Payments | $56,162 |
Stockholders’ Equity
As of September 30, 2024, the total stockholders' equity was $72,743,000, with an accumulated deficit of $1,234,671,000.
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Resources:
- Allakos Inc. (ALLK) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Allakos Inc. (ALLK)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Allakos Inc. (ALLK)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.