- The stock price of Allakos Inc (NASDAQ: ALLK) fell by over 85% pre-market today. This is why it happened.
The stock price of Allakos Inc (NASDAQ: ALLK) – a biotechnology company developing lirentelimab (AK002) for the treatment of eosinophil and mast cell-related diseases – fell by over 85% pre-market today. Investors are responding negatively to Allakos reporting data from ENIGMA 2, a 24-week Phase 3 randomized, double-blind, placebo-controlled study of lirentelimab in patients with biopsy-confirmed eosinophilic gastritis (EG) and/or eosinophilic duodenitis (EoD) and KRYPTOS, a 24-week Phase 2/3 randomized, double-blind, placebo-controlled study of lirentelimab in patients with biopsy-confirmed eosinophilic esophagitis (EoE).
Both the ENIGMA 2 and KRYPTOS studies met their histologic co-primary endpoints but did not achieve statistical significance on the patient-reported symptomatic co-primary endpoints.
“We are deeply disappointed that the studies did not achieve their symptomatic endpoints. The company is grateful to the patients with eosinophilic gastrointestinal diseases (EGIDs) and to the investigators who participated in the ENIGMA and KRYPTOS trials.”
— Robert Alexander, PhD, Chief Executive Officer of Allakos
“Although the EGID results are surprising and disappointing, we will continue to analyze the data to understand the results and to determine the path forward for lirentelimab in EGIDs. At present we intend to continue our development efforts with subcutaneous lirentelimab in atopic dermatitis, chronic spontaneous urticaria, and asthma. The atopic dermatitis study is underway and we plan to initiate chronic spontaneous urticaria and asthma studies in 2022 and will continue to advance other programs in our preclinical pipeline.”
— Dr. Craig Paterson, MD, Chief Medical Officer of Allakos
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