Allakos Announces a Restructuring to Focus on Development of AK006

• Existing cash to fund planned ongoing operations into mid-2026
• AK006 is being tested in a comprehensive Phase 1 clinical program, including:
  • ongoing single and multiple ascending dose trial in healthy volunteers
  • a randomized, double-blind, placebo-controlled trial in patients with CSU
  • a subcutaneous AK006 Phase 1 PK and bioavailability trial
• Management to host conference call and webcast today at 8:00 am E.T.

SAN CARLOS, Calif., Jan. 16, 2024 (GLOBE NEWSWIRE) -- Allakos Inc. (the Company) (Nasdaq: ALLK), a biotechnology company developing antibodies for the treatment of allergic, inflammatory and proliferative diseases, today announced a restructuring to reduce costs and to focus on AK006 clinical development and additional preclinical programs. As a result, the Company’s cash runway is expected to extend into mid-2026.

Restructuring Activities
The Company will halt lirentelimab-related activities across clinical, manufacturing, research and administrative functions. As a result, the Company will reduce its workforce by approximately 50%.

Cash Guidance
The Company ended the fourth quarter of 2023 with approximately $171 million in cash, cash equivalents and investments (unaudited). The Company’s outlook for 2024 cash, cash equivalents and investments is as follows:

Cash, cash equivalents and investments at year end 2023 (unaudited)	$171 million
Estimated 2024 net cash used in operating activities (GAAP)	($85 to $90 million)
Estimated cash, cash equivalents and investments at year end 2024	$81 to $86 million

Components of estimated 2024 net cash used in operating activities for the year ended December 31, 2024 are as follows:

Estimated net cash used in operating activities (GAAP)	$85 to $90 million
Less: estimated lirentelimab closeout, severance and other costs 1	($30 million)
Estimated adjusted net cash used in operating activities (non-GAAP)	$55 to $60 million

¹ The Company anticipates that the significant majority of the restructuring expenditures will be paid in the first half of 2024.