Allakos trials under investor scrutiny

Allakos is in the midst of an intense clinical trial controversy, with billions of dollars on the line. The Bay Area biotech is again testing its digestive disease drug, antolimab, in a Phase 1 safety and tolerability trial — despite having already promised investors it’d soon be moving into Phase 3.

Just last fall, Allakos had a $6 billion-plus market value, though that’s since dropped by half. Critics argue that the company is promoting positive study results while hiding data that might call into question antolimab’s safety and efficacy.

“The new Phase 1 trial is worrisome,” one analyst told STAT’s Adam Feuerstein. “It makes me wonder if Allakos believes their own Phase 2 data, or if the FDA has signaled a problem. In any event, the company is being less than transparent.”