Allakos (ALLK) AI Stock Analysis

• Market Cap: $29.42M
• Dividend Yield: N/A
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: N/A
• EPS Growth: 38.65%
• Country: US
• Employees: 131
• Sector: Healthcare
• Sector Strength: 70
• Industry: Biotechnology
• EPS (TTM): -1.31
• Shares Outstanding: 90,203,250
• 10 Day Avg. Volume: 812,586
• 30 Day Avg. Volume: 1,688,890
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $0.40
• Price Target Upside: 21.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

Allakos faces significant financial challenges with no revenue and ongoing cash burn, exacerbated by recent strategic setbacks like the AK006 discontinuation and layoffs. While some technical indicators show short-term positive momentum, the overall risks and negative sentiment from corporate events weigh heavily, resulting in a low stock score.

Positive Factors

Cash Reserves

The company ended the quarter with a substantial amount of cash and equivalents.

Financial Stability

ALLK reported a net income for the quarter, reflecting a stable financial position despite challenges.

Negative Factors

Clinical Trial Results

AK006 failed to demonstrate therapeutic activity vs. placebo, and that further development of AK006 is being discontinued.

Program Termination Costs

There are significant wind down costs related to shutting down the AK006 program, severance payments, and contractual payments to vendors.

Workforce Reduction

The Allakos workforce is being reduced by approximately 75%.

Allakos Business Overview & Revenue Model

Company Description

Allakos Inc. is a biotechnology company that focuses on the development of therapeutic antibodies targeting allergic, inflammatory, and proliferative diseases. The company's primary product candidate is lirentelimab (AK002), designed to target specific immune cells implicated in various diseases. Allakos operates within the healthcare sector, specifically in the biopharmaceutical industry, where it seeks to address unmet medical needs through innovative biologic treatments.

How the Company Makes Money

As a biotechnology company, Allakos primarily makes money through the development and commercialization of its therapeutic products. Revenue generation is generally achieved through a combination of product sales, licensing agreements, and collaboration partnerships with other pharmaceutical or biotech companies. Allakos may also receive milestone payments and royalties based on the successful development and commercialization of its drug candidates. However, as of the latest available data, Allakos has not yet commercialized any products, and its revenues are mainly dependent on funding from investors and potential partnerships.

Allakos Financial Statement Overview

Summary

Allakos is experiencing typical challenges of a biotech firm in development, with no revenue, sustained losses, and cash burn. While it maintains a conservative debt profile, declining cash reserves suggest potential liquidity issues.

Income Statement

Allakos has had consistently no revenue over the years, which is expected in the biotechnology sector where the focus is often on R&D before product commercialization. The company has been experiencing significant losses, indicated by negative EBIT and net income. This reflects high operational costs without offsetting income, leading to weak profitability metrics.

Balance Sheet

The company maintains a conservative debt profile with zero debt in the latest period and historically low debt levels. However, declining cash reserves and shrinking equity base are concerning. The high equity ratio indicates reliance on equity financing, common in biotech, but depleting cash suggests potential liquidity challenges.

Cash Flow

Allakos shows negative operating and free cash flows, indicating cash burn which is typical for pre-revenue biotech firms engaged in R&D. The decreasing trend in free cash flow is worrying, though offset by previous financing activities. The cash flow to net income ratios are not meaningful due to negative net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	0.00	0.00
	Gross Profit
0.00	-6.14M	-9.97M	-4.88M	-2.34M
	EBIT
-122.22M	-196.06M	-322.43M	-271.48M	-157.06M
	EBITDA
-122.22M	-189.91M	-315.36M	-269.17M	-155.51M
	Net Income Common Stockholders
-115.82M	-185.70M	-317.48M	-267.17M	-147.62M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
80.82M	170.79M	279.79M	424.24M	659.00M
	Total Assets
96.60M	243.61M	386.42M	534.82M	719.62M
	Total Debt
4.16M	41.47M	49.11M	49.10M	42.77M
	Net Debt
-13.60M	-24.98M	-38.11M	-103.72M	-164.40M
	Total Liabilities
17.78M	74.79M	75.99M	89.35M	65.22M
	Stockholders Equity
78.82M	168.82M	310.43M	445.48M	654.39M
Cash Flow		Free Cash Flow
-93.74M	-117.07M	-288.30M	-241.07M	-114.55M
	Operating Cash Flow
-93.62M	-116.48M	-279.97M	-207.85M	-113.92M
	Investing Cash Flow
44.76M	93.17M	71.68M	143.24M	3.90M
	Financing Cash Flow
177.00K	2.53M	141.88M	10.26M	278.84M

Allakos Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALLK, the sentiment is Neutral. The current price of 0.33 is above the 20-day moving average (MA) of 0.32, above the 50-day MA of 0.28, and below the 200-day MA of 0.70, indicating a neutral trend. The MACD of 0.01 indicates Negative momentum. The RSI at 59.77 is Neutral, neither overbought nor oversold. The STOCH value of 123.15 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ALLK.

Allakos Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$5.35B	3.41	-40.48%	2.89%	17.92%	2.25%
LSTA	43 Neutral	$21.81M	―	-51.43%	―	―	7.07%
CRIS	41 Neutral	$19.46M	―	-634.71%	―	8.83%	22.06%
QTTB	41 Neutral	$20.55M	―	-121.36%	―	-100.00%	91.45%
ALLK	39 Underperform	$29.42M	―	-93.54%	―	―	38.65%
BCAB	35 Underperform	$25.99M	―	-164.30%	―	―	44.38%
CMMB	33 Underperform	$25.27M	―	-91.76%	―	―	57.93%

Allakos Corporate Events

Allakos Announces Merger Agreement with Concentra Biosciences

On April 1, 2025, Allakos Inc. entered into a Merger Agreement with Concentra Biosciences, LLC, whereby Concentra will acquire Allakos for $0.33 per share in cash. The transaction, unanimously approved by Allakos’ Board of Directors, involves a tender offer for all outstanding shares and is expected to close by May 2025, subject to customary conditions. This merger positions Allakos as a wholly owned subsidiary of Concentra, potentially impacting stakeholders by consolidating operations and aligning with Concentra’s strategic objectives.