Benzinga - by Priya Nigam, Benzinga Staff Writer.
Shares of Allakos Inc (NASDAQ: ALLK) were climbing in early trading on Monday.
Despite past setbacks, lirentelimab has a “strong chance” of showing efficacy in the atopic dermatitis and chronic spontaneous urticaria readouts, according to William Blair.
The Allakos Analyst: Tim Lugo upgraded the rating for Allakos to Outperform.
The Allakos Thesis: The top-line results from two studies of subcutaneous lirentelimab is expected by either yearend or early 2024, Lugo said in the upgrade note.
Check out other analyst stock ratings.
The first study is a Phase II study in atopic dermatitis (AD) and the second is a Phase IIb study in chronic spontaneous urticaria (CSU), he added.
“While the past setbacks have been painful, given current valuation with shares trading at an enterprise value of less than $100 million while the closest comparable company Celldex is trading at an enterprise value of $1.8 billion following its Phase II data in chronic spontaneous urticaria (CSU), we see significant upside if proof of concept is positive in either of the upcoming Phase II studies,” the analyst wrote.
ALLK Price Action: Shares of Allakos had risen by 6.50% to $3.20 at the time of publication on Monday.
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