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Allakos sustains its gains on strength of GI readout

Data for first-in-class gastrointestinal disorders program could position Allakos as a bolt-on acquisition target

August 9, 2019 11:03 PM UTC
Updated on Dec 10, 2019 at 6:49 PM UTC

Not even the dilution of an upsized follow-on offering could slow Allakos’ momentum as its share price marched north steadily through midweek on the strength of Phase II data in eosinophilic gastrointestinal disorders, suggesting investors are betting the company is ripe for a takeout.

Shares of Allakos Inc. (NASDAQ:ALLK) added $53.88 (174%) to $84.88 across five trading sessions after the company announced early Monday that AK002, a first-in-class inhibitor of sialic acid binding Ig like lectin 8 (SIGLEC8), met the primary endpoint in the Phase II ENIGMA study. Two combined dose cohorts of AK002 led to a 95% reduction in gastric or duodenal eosinophil counts vs. a 10% increase for placebo (p<0.0001) in patients with eosinophilic gastritis (EG) or eosinophilic gastroenteritis (EGE), including some with eosinophilic esophagitis (EoE)...

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