Allakos downgraded to Neutral from Overweight at Cantor Fitzgerald

Cantor Fitzgerald analyst Jennifer Kim downgraded Allakos to Neutral from Overweight with no price target after the company announced the Phase 2 trials for lirentelimab in atopic dermatitis, or AD, and chronic spontaneous urticaria, or CSU, ,did not meet their primary endpoints. The firm, which also notes the company announced a restructuring to focus on clinical development of AK006, removed revenues for lirentelimab and added CSU revenues for AK006, with an estimated launch in 2029 for now, which is two years after what it had previously modeled for lirentelimab. Though the firm doesn’t set a target on the shares, it notes that its analysis arrives at a calculated equity value per share of about $2, which is above the current share price and closer to estimated year-end 2023 cash per share.