tiprankstipranks
Allakos Reveals Topline Results from ENIGMA 2 & KRYPTOS Studies; Shares Crash
Market News

Allakos Reveals Topline Results from ENIGMA 2 & KRYPTOS Studies; Shares Crash

Allakos, Inc. (NASDAQ: ALLK) recently revealed topline results from the ENIGMA 2 & KRYPTOS studies. Following the results, shares of the biotechnology company plunged almost 90% on Wednesday to close at $8.55, then rose 11.7% in the extended trading session. 

Both the ENIGMA 2 and KRYPTOS studies met their histologic co-primary endpoints but failed to achieve statistical significance on the symptomatic endpoints. 

The results followed Phase 3 data from the ENIGMA 2 study and Phase 2/3 data from the KRYPTOS study. Notably, the ENIGMA 2 study of lirentelimab in patients with biopsy-confirmed eosinophilic gastritis (EG) and/or eosinophilic duodenitis (EoD) included 180 participants, while KRYPTOS enrolled 276 patients with biopsy-confirmed eosinophilic esophagitis (EoE). 

Official Comments 

Allakos CEO Robert Alexander said, “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.”  

Dr. Craig Paterson, MD, Chief Medical Officer of Allakos commented, “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.” 

Wall Street’s Take 

Following the recent clinical update, Cowen & Co. analyst Joseph Thome downgraded Allakos to a Hold from a Buy but did not assign a price target, pending pipeline clarity. 
 
Overall, the stock has a Hold consensus rating based on 3 Buys, 5 Holds, and 1 Sell. The average Allakos price target of $148.50 implies 1,636.84% upside potential to current levels. Shares have fallen 94.3% over the past year. 

Risk Analysis 

According to the new TipRanks’ Risk Factors tool, Allakos stock is at risk mainly from three factors: Tech and Innovation, Finance and Corporate, and Legal & Regulatory, which contribute 32%, 26%, and 21%, respectively to the total 62 risks identified for the stock.

Related News: 
GE Digital Inks Deal to Buy Opus One; Shares Gain 
Amazon Announces Plan to Create New Jobs; Shares Gain 
MHRA Authorizes Deciphera’s QINLOCK in the U.K.

Trending

Name
Price
Price Change
S&P 500
Dow Jones
Nasdaq 100
Bitcoin

Popular Articles