Piper Sandler downgraded Allakos (ALLK) to Neutral from Overweight with a price target of 30c, down from $7. The firm says that with low expectations going into the Phase 1 data for AK006 in chronic spontaneous urticaria, it does not believe investors were surprised to hear the news this morning that AK006 did not demonstrate therapeutic activity. Allakos will be discontinuing AK006 across clinical, manufacturing, research, and administrative functions to explore strategic alternatives, the analyst tells investors in a research note. Piper reminds investors that AK006 was the company’s only asset, leaving the remaining valuation restricted to cash. Based on this, the firm downgraded the shares.
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Read More on ALLK:
- Allakos downgraded to Neutral from Overweight at Piper Sandler
- Allakos to discontinue further clinical development of AK006, cut workforce 75%
- Allakos Restructures Amid AK006 Program Discontinuation
- Allakos Restructures Amid AK006 Discontinuation and Layoffs
- Allakos announces results from its Phase 1 trial of AK006
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