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SAN CARLOS, CA – Allakos Inc (NASDAQ:ALLK)., a biopharmaceutical company with a market capitalization of $22.34 million, has received notification from The Nasdaq Stock Market LLC that it no longer meets the minimum bid price requirement for continued listing on the Nasdaq Global Select Market. The company’s common stock, traded under the ticker ALLK, has closed below the required $1.00 minimum bid price for 30 consecutive business days as of Tuesday, currently trading at $0.25. According to InvestingPro data, the stock has declined 78.5% year-to-date, though analysis suggests the stock may be undervalued at current levels.
The notice, dated March 12, 2025, does not immediately affect Allakos’ listing, and its stock will continue to trade on Nasdaq, provided the company meets other listing criteria. Allakos has been granted a 180-day period, ending on September 8, 2025, to regain compliance with the minimum bid price rule. Despite recent challenges, InvestingPro analysis shows the company maintains strong liquidity with a current ratio of 6.08 and holds more cash than debt on its balance sheet.
To comply, Allakos’ common stock must maintain a closing bid price of at least $1.00 for at least ten consecutive business days during this period. Nasdaq may extend this period at its discretion. If Allakos fails to meet the requirement by the end of the compliance period, it may be eligible for an additional 180-day period by transferring to the Nasdaq Capital Market, subject to certain conditions.
Allakos has stated its intention to monitor its stock price closely and to consider options to address the deficiency. These options may include a reverse stock split if necessary. The company, however, has cautioned that there is no guarantee it will achieve or maintain compliance with Nasdaq’s listing standards.
This development is based on a press release statement and reflects the company’s current situation regarding its Nasdaq listing status. For investors seeking deeper insights into Allakos’s financial health and prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, which includes detailed metrics, expert analysis, and 12 additional ProTips about the company’s current situation.
In other recent news, Allakos Inc. announced the discontinuation of its AK006 drug development following disappointing results from a phase 1 clinical trial for chronic spontaneous urticaria (CSU). The trial showed that AK006 did not provide the expected clinical benefits, leading the company to cease development and reduce its workforce by approximately 75%. Financially, Allakos reported it had about $81 million in cash at the end of 2024, with expected restructuring costs of $34 million to $38 million, which will primarily impact the first half of 2025. After these costs, the company anticipates its cash reserves to be between $35 million and $40 million by mid-2025. In response to these developments, Jefferies revised its price target for Allakos shares to $0.40, maintaining a "Hold" rating. This adjustment reflects Jefferies’ reassessment of Allakos’ prospects amid the halted drug development and strategic shifts. Meanwhile, TD Cowen included Allakos in its list of potential biotech catalysts to monitor in 2025, indicating ongoing interest in the company’s future directions.
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