Allakos Inc (ALLK) Reports Increased R&D Expenses and Net Loss in Q3 2023
Research and development expenses doubled to $36.7 million in Q3 2023 from $18.4 million in Q3 2022.
Net loss widened to $45.6 million in Q3 2023, up from $30.8 million in the same period last year.
Allakos ended the quarter with $193.9 million in cash, cash equivalents, and investments.
Key clinical milestones anticipated in late Q4 2023 to Q1 2024 for lirentelimab studies.
On November 13, 2023, Allakos Inc (NASDAQ:ALLK) released its 8-K filing, detailing the company's financial results for the third quarter ended September 30, 2023, and providing a business update. The biotechnology firm, which focuses on developing antibodies for allergic, inflammatory, and proliferative diseases, reported significant developments in its clinical programs alongside its financial performance.
Financial Performance Overview
Allakos Inc (NASDAQ:ALLK) experienced a substantial increase in research and development expenses, which rose to $36.7 million in the third quarter of 2023, up from $18.4 million in the same quarter of the previous year. This increase was primarily due to a $16.7 million rise in manufacturing costs related to the company's lirentelimab (AK002) and AK006 programs, as well as a $1.6 million increase in other research and development expenses.
Conversely, general and administrative expenses saw a decrease, dropping to $11.5 million in Q3 2023 from $13.0 million in Q3 2022, attributed to reductions in professional expenses, employee compensation, and other administrative costs.
The net loss for the quarter was reported at $45.6 million, compared to a net loss of $30.8 million in the third quarter of the previous year. The net loss per basic and diluted share stood at $0.52 for Q3 2023, slightly down from $0.53 in Q3 2022.
Balance Sheet and Cash Flow
Allakos concluded the third quarter with $193.9 million in cash, cash equivalents, and investments, marking a net decrease of $27.2 million during the quarter. The balance sheet reflects the company's ongoing investment in its clinical programs and operational activities.
Clinical Developments and Corporate Updates
On the clinical front, Allakos completed enrollment for the Phase 2 study of subcutaneous lirentelimab in patients with atopic dermatitis and the Phase 2b study in patients with chronic spontaneous urticaria (CSU). The company also began dosing patients in the Phase 1 study of AK006, which will explore the activity of the drug in a cohort of patients with CSU.
Looking ahead, Allakos anticipates topline data from the Phase 2 study of lirentelimab in patients with atopic dermatitis and the Phase 2b study in patients with CSU in late Q4 2023 to Q1 2024. The Phase 1 AK006 study's randomized cohort in patients with CSU is expected to commence in Q2 2024.
The company also strengthened its leadership with the appointment of Neil Graham, M.D., Rand Sutherland, M.D., and Dolca Thomas, M.D. to the Allakos Board of Directors.
Conclusion
Allakos Inc (NASDAQ:ALLK) continues to advance its clinical programs, with significant milestones on the horizon. Despite the increased net loss and R&D expenses, the company maintains a solid cash position to support its ongoing and future clinical trials. Investors and stakeholders will be closely watching the forthcoming clinical data, which could be pivotal for Allakos's therapeutic candidates.
For more detailed information about Allakos Inc (NASDAQ:ALLK) and its financial results, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Allakos Inc for further details.
This article first appeared on GuruFocus.
