Allakos, based in a suite on Industrial Road in San Carlos, Calif., is laying off dozens of workers after a failed trial.

The future of the Bay Area biotech firm Allakos was riding on one clinical trial, for a drug designed to treat the skin condition known as chronic spontaneous urticaria, or chronic hives. But on Monday, Allakos announced that the tests flopped — and that the company is now laying off most of its remaining staff.

Allakos revealed the results and announced an accompanying 75% layoff in a news release and a filing with the Securities and Exchange Commission. The San Carlos-based firm had tested its hives drug, called AK006, in a 14-week trial with 34 adult patients. The patients didn’t see serious side effects, but the drug also didn’t outperform a placebo — Allakos plans to........

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