Allakos (ALLK) Stock Rockets On Data And Financial Results

Allakos ALLK Stock News

Allakos Inc (NASDAQ: ALLK) is making a run for the top in the market today with gains that are better stated in multiples than percentages. The gains come after the company announced financial results for the most recent quarter as well as positive clinical data. Here’s what’s happening:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

ALLK Stock Climbs On Clinical Data

In a press release issued early this morning, Allakos provided the data from a Phase 2 clinical study of AK002. The treatment is being developed as a potential option for patients with eosinophilic gastritis and/or eosinophilic gastroenteritis.

In the release, ALLK said that all dose arms showed clinically meaningful and statistically significant benefits when compared to placebo with regard to all prespecified primary and secondary endpoints. In particular, the company saw strong improvements in gastrointestinal tissue eosinophil counts as well as reduced disease symptoms reported by patients.

Importantly, the statistically significant difference displayed in patients who received AK002 took place just one day following treatment administration. In a statement, Dr. Evan Dellon, M.D., one of the principal investigators on the trial, had the following to offer:

Eosinophilic gastritis, eosinophilic gastroenteritis, and eosinophilic esophagitis are severe debilitating diseases with no approved therapies. AK002 is unique in that it targets both eosinophils and mast cells, two major effector cell types that cause disease-related tissue damage. In this study, AK002 reduced eosinophil and mast cell counts and showed a statistically significant improvement in disease symptoms one day after administration. These are clinically meaningful changes, and these data suggest that AK002 could provide rapid and sustained benefit in patients with eosinophil gastrointestinal diseases. I look forward to the continued development of AK002 in these severe orphan conditions.

Second Quarter Financial Results

In another press release issued this morning, Allakos provided its financial results for the second fiscal quarter. As a clinical-stage company, ALLK has no approved products on the market, and therefore does not generate revenue.

Nonetheless, during the second quarter, the company generated a net loss of $19.1 million. Net loss per share came in at $0.44, comparing well to the loss of $4.17 per share reported in the second quarter of 2019.

Importantly, the company had $153.1 million in cash, cash equivalents and marketable securities at the close of Q2. Based on the amount of available cash and the net loss experienced by Allakos in the second quarter, this is plenty of funding to get through about 2 years of operations.

Today’s News Is Significant

First and foremost, the data released today proved to be incredibly positive. Considering that the data came from a Phase 2 study, the next step would be a pivotal Phase 3 clinical study, setting the stage for a potential regulatory filing. So, we have plenty of catalysts to look forward to ahead relating to the development of the drug.

Moreover, with plenty of cash on hand to get through about 2 years of operations, ALLK has a good financial runway to get it close to potential approval, making this an investment opportunity that’s hard to ignore.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Don’t Miss The Next Big Story!

Join our free mailing list below to receive real-time updates!

Subscribe Today!

* indicates required

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.