Why Allakos Shares Are Plummeting Today

Allakos Inc ALLK is trading significantly lower Wednesday after the company announced ENIGMA 2 and KRYPTOS studies did not achieve statistical significance on the patient reported symptomatic co-primary endpoints.

"We are deeply disappointed that the studies did not achieve their symptomatic endpoints," said Robert Alexander, CEO of Allakos.

Allakos chief medical officer Craig Paterson added, "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."

Analyst Assessment: Multiple analyst firms weighed in on the stock following the results of the studies:

• Barclays analyst Carter Gould maintained Allakos with an Underweight rating and lowered the price target from $36 to $8.
• William Blair analyst Tim Lugo downgraded Allakos from an Outperform rating to a Market Perform rating.
• SVB Leerink analyst Thomas Smith downgraded Allakos from an Outperform rating to a Market Perform rating and lowered the price target from $150 to $17.
• Cowen & Co. analyst Joseph Moore downgraded Allakos from an Outperform rating to a Market Perform rating.
• Jefferies analyst Maury Raycroft downgraded Allakos from a Buy rating to a Hold rating.

See Also: Why Paychex Shares Are Making New All-Time Highs Today

Allakos is a clinical-stage company developing therapeutic antibodies that selectively target immunomodulatory receptors present on the surface of immune effector cells involved in allergic, inflammatory and proliferative diseases.

ALLK Price Action: Allakos has traded as high as $157.98. It's making new 52-week lows during Wednesday's trading session.

The stock was down 88.50% at $9.67 at time of publication.