SAN CARLOS, Calif., Aug. 29, 2018 (GLOBE NEWSWIRE) -- Allakos Inc. (NASDAQ:ALLK), a clinical stage biotechnology company focused
on the development of antibodies for the treatment of eosinophil and mast cell related diseases, today announced financial results
for the second quarter ended June 30, 2018.
Second Quarter 2018 Financial Results
Research and development expenses were $7.1 million in the second quarter of 2018 as compared to $3.8 million
in the same period in 2017. The increase in research and development expenses was primarily related to an increase in consulting
and personnel-related costs, as well as contract research and development activities related to the continued advancement of AK002,
the Company’s lead antibody.
General and administrative expenses were $2.4 million in the second quarter of 2018 as compared to $0.8 million in the
same period in 2017. The increase in general and administrative expenses was primarily attributable to an increase in
personnel-related costs as a result of the Company’s increase in employee headcount, as well as incremental expense incurred from
outside professional service providers for legal, information technology, and investor relations support in preparation for the
Company’s initial public offering.
Allakos reported a net loss of $9.4 million in the second quarter of 2018 as compared to $4.7 million in the same
period in 2017, an increase of $4.7 million. Net loss per basic and diluted share was $4.17 for the second quarter of 2018 compared
to $3.18 in the same period in 2017. Net loss per basic and diluted share is based on a weighted-average number of shares
outstanding in the period, and therefore, does not include shares sold in the Company’s initial public offering and concurrent
private placement on July 23, 2018.
Allakos ended the second quarter of 2018 with $64.1 million in cash, cash equivalents and marketable securities, which
does not include $141.8 million of proceeds, net of underwriting discounts and commissions, received from the Company’s initial
public offering and concurrent private placement on July 23, 2018.
About Allakos
Allakos is a clinical stage company developing antibodies that target immunomodulatory receptors present on immune effector cells
involved in allergic, inflammatory, and proliferative diseases. The Company’s lead antibody, AK002, targets Siglec-8, an inhibitory
receptor expressed on human mast cells and eosinophils. Inappropriately activated eosinophils and mast cells have been identified
as key drivers in a number of severe diseases affecting the gastrointestinal tract, eyes, skin, lungs and other organs. AK002 has
completed two Phase 1 trials, one in healthy volunteers and a single ascending dose trial in patients with indolent systemic
mastocytosis. AK002 demonstrated pharmacodynamic activity in both trials and in the trial involving patients with indolent systemic
mastocytosis, patients reported improvements in their symptoms. AK002 is being tested in a phase 2 trial for the treatment of
eosinophilic gastritis with or without eosinophilic gastroenteritis. In addition, Allakos is conducting multiple dose trials with
AK002 in chronic urticaria, indolent systemic mastocytosis, and severe allergic conjunctivitis. For more information, please visit
the Company's website at www.allakos.com.
Source: Allakos Inc.
| ALLAKOS INC. |
| CONDENSED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS |
| (in thousands, except per
share data) |
| (unaudited) |
| |
| |
|
Three Months
Ended
June 30, |
|
Six Months
Ended
June 30, |
| |
|
|
| |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development |
|
$ |
7,149 |
|
|
$ |
3,758 |
|
|
$ |
13,550 |
|
|
$ |
8,122 |
|
| General and administrative |
|
2,375 |
|
|
840 |
|
|
4,683 |
|
|
1,453 |
|
| Total operating expenses |
|
9,524 |
|
|
4,598 |
|
|
18,233 |
|
|
9,575 |
|
| Loss from operations |
|
(9,524 |
) |
|
(4,598 |
) |
|
(18,233 |
) |
|
(9,575 |
) |
| Interest income (expense), net |
|
292 |
|
|
(73 |
) |
|
516 |
|
|
(137 |
) |
| Other expense, net |
|
(145 |
) |
|
(21 |
) |
|
(145 |
) |
|
(36 |
) |
| Net loss |
|
(9,377 |
) |
|
(4,692 |
) |
|
(17,862 |
) |
|
(9,748 |
) |
| Unrealized gain on marketable securities, net of tax |
|
3 |
|
|
— |
|
|
3 |
|
|
— |
|
| Comprehensive loss |
|
$ |
(9,374 |
) |
|
$ |
(4,692 |
) |
|
$ |
(17,859 |
) |
|
$ |
(9,748 |
) |
| Net loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted |
|
$ |
(4.17 |
) |
|
$ |
(3.18 |
) |
|
$ |
(8.36 |
) |
|
$ |
(6.73 |
) |
| Weighted-average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and diluted |
|
2,248 |
|
|
1,477 |
|
|
2,137 |
|
|
1,449 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| ALLAKOS INC. |
| CONDENSED balance
sheets |
| (in thousands, except per
share data) |
| |
| |
|
June 30, |
|
|
December 31, |
|
| |
|
2018 |
|
|
2017 |
|
| |
|
(unaudited) |
|
|
|
|
| Assets |
|
|
|
|
|
|
| Current assets: |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
19,295 |
|
|
$ |
85,207 |
|
| Investments in marketable securities |
|
44,851 |
|
|
— |
|
| Prepaid expenses and other current assets |
|
2,987 |
|
|
1,037 |
|
| Total current assets |
|
67,133 |
|
|
86,244 |
|
| Property and equipment, net |
|
3,376 |
|
|
445 |
|
| Other long-term assets |
|
3,716 |
|
|
340 |
|
| Total assets |
|
$ |
74,225 |
|
|
$ |
87,029 |
|
| Liabilities, Convertible Preferred Stock and Stockholders'
Deficit |
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
| Accounts payable |
|
$ |
1,928 |
|
|
$ |
1,703 |
|
| Accrued expenses and other current liabilities |
|
3,082 |
|
|
1,089 |
|
| Total current liabilities |
|
5,010 |
|
|
2,792 |
|
| Other long-term liabilities |
|
1,468 |
|
|
36 |
|
| Total liabilities |
|
6,478 |
|
|
2,828 |
|
| Convertible preferred stock |
|
143,019 |
|
|
142,969 |
|
| Stockholders' deficit: |
|
|
|
|
|
|
| Common stock |
|
3 |
|
|
3 |
|
| Additional paid-in capital |
|
3,158 |
|
|
1,803 |
|
| Accumulated other comprehensive income |
|
3 |
|
|
— |
|
| Accumulated deficit |
|
(78,436 |
) |
|
(60,574 |
) |
| Total stockholders’ deficit |
|
(75,272 |
) |
|
(58,768 |
) |
| Total liabilities, convertible preferred stock, and stockholders’
deficit |
|
$ |
74,225 |
|
|
$ |
87,029 |
|
Investor Contact: Adam Tomasi, COO, CFO ir@allakos.com Media Contact: Denise Powell denise@redhousecomms.com
