UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
|
||||
|
||||
(Address of Principal Executive Offices) |
|
(Zip Code) |
||
Registrant’s Telephone Number, Including Area Code: |
|
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
|
|
Trading |
|
|
|
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 6, 2024, Alector, Inc. (the “Company”) announced its financial results for the quarter ended September 30, 2024. A press release announcing these results, which is attached hereto as Exhibit 99.1, is incorporated herein by reference.
All of the information furnished in Item 2.02 and Item 9.01 (including Exhibit 99.1) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit No. |
Description |
99.1 |
|
104 |
Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
|
|
|
ALECTOR, INC. |
|
|
|
|
Date: |
November 6, 2024 |
By: |
/s/ Arnon Rosenthal |
|
|
|
Arnon Rosenthal, Ph.D. |
Exhibit 99.1
Alector Reports Third Quarter 2024 Financial Results and Provides Business Update
Data from INVOKE-2, evaluating TREM2 agonist candidate AL002 in patients with early Alzheimer’s disease (AD), on track for 2024
Participant baseline characteristics in pivotal INFRONT-3 Phase 3 trial suggest a representative study population for testing the effects of latozinemab in frontotemporal dementia with a progranulin gene mutation (FTD-GRN)
$457.2 million in cash, cash equivalents and investments provide runway through 2026
South San Francisco, Calif., November 6, 2024 -- Alector, Inc. (Nasdaq: ALEC), a clinical-stage biotechnology company pioneering immuno-neurology, today reported third quarter 2024 financial results and recent portfolio and business updates. As of September 30, 2024, Alector’s cash, cash equivalents, and investments totaled $457.2 million.
“We continue to make meaningful progress advancing our innovative pipeline of product candidates and remain on track to report data in 2024 from the INVOKE-2 Phase 2 trial of AL002, the most advanced TREM2 candidate in clinical development for early Alzheimer’s disease,” said Arnon Rosenthal, Ph.D., Chief Executive Officer of Alector. “We believe that increased TREM2 signaling via AL002 may recruit disease-fighting microglia to broadly counteract the progression of Alzheimer’s disease. INVOKE-2 is designed to provide meaningful insights into AL002’s potential benefits across a combination of clinical and functional endpoints, as well as imaging and fluid biomarkers. We also believe that the broad mechanism of AL002 may have the potential to deliver potent and durable therapeutic benefits, both as a standalone therapy and in combination with anti-amyloid beta antibodies.”
Dr. Rosenthal continued, “For our progranulin franchise, we recently reported the patient baseline characteristics for our INFRONT-3 Phase 3 clinical trial of latozinemab in frontotemporal dementia with a progranulin gene mutation, suggesting a representative study population in this indication. We are approaching a top-line data readout for INFRONT-3 in late 2025/early 2026. Additionally, PROGRESS-AD, the Phase 2 trial of AL101/GSK4527226 in early Alzheimer’s disease, has reached more than one-third of its target enrollment. It is an exciting time at Alector, and we are well positioned to advance our proprietary pipeline of novel immuno-neurology drugs.”
Sara Kenkare-Mitra, Ph.D., President and Head of Research and Development at Alector, added, “We are actively advancing our Alector Brain Carrier, ABC, a proprietary versatile blood-brain barrier technology, and we are strategically leveraging this platform across our portfolio. We believe our ABC technology may advance treatment of neurodegenerative diseases by potentially enabling improved delivery of our therapeutics to the brain.”
3Q24 Earnings Release Page 2
Recent Clinical Updates
Immuno-Neurology Portfolio
TREM2 Program (AL002) Being Developed in Collaboration with AbbVie
Progranulin Programs (latozinemab (AL001) and AL101/GSK4527226) Being Developed in Collaboration with GSK
3Q24 Earnings Release Page 3
Early Research Pipeline
Third Quarter 2024 Financial Results
Revenue. Collaboration revenue for the quarter ended September 30, 2024, was $15.3 million, compared to $9.1 million for the same period in 2023. The increase was mainly due to an increase in revenue recognized for the AL002 program.
R&D Expenses. Total research and development expenses for the quarter ended September 30, 2024, were $48.0 million, compared to $46.3 million for the quarter ended September 30, 2023. The increase was mainly driven by the increase in research and development expenses for the AL101 programs resulting from the initiation of the PROGRESS-AD Phase 2 clinical trial in 2024.
G&A Expenses. Total general and administrative expenses for the quarter ended September 30, 2024, were $15.8 million, compared to $13.4 million for the quarter ended September 30, 2023. The increase was mainly due to the impairment of the right-of-use asset and the leasehold improvements as the Company transitioned operations from its laboratory and office space in Newark to its South San Francisco headquarters.
Net Loss. For the quarter ended September 30, 2024, Alector reported a net loss of $42.2 million, or $0.43 per share, compared to a net loss of $44.5 million, or $0.53 per share, for the same period in 2023.
Cash Position. Cash, cash equivalents, and investments were $ 457.2 million as of September 30, 2024. Management expects that this will be sufficient to fund current operations through 2026.
3Q24 Earnings Release Page 4
2024 Guidance. The Company continues to anticipate collaboration revenue to be between $60 million and $70 million, total research and development expenses to be between $210 million and $220 million, and total general and administrative expenses to be between $60 million and $70 million.
About Alector
Alector is a clinical-stage biotechnology company pioneering immuno-neurology, a novel therapeutic approach for the treatment of neurodegenerative diseases. Immuno-neurology targets immune dysfunction as a root cause of multiple pathologies that are drivers of degenerative brain disorders. Alector has discovered and is developing a broad portfolio of innate immune system programs, designed to functionally repair genetic mutations that cause dysfunction of the brain’s immune system and enable rejuvenated immune cells to counteract emerging brain pathologies. Alector’s immuno-neurology product candidates are supported by biomarkers and seek to treat indications, including Alzheimer’s disease and genetically defined frontotemporal dementia patient populations. Alector is headquartered in South San Francisco, California. For additional information, please visit www.alector.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to, statements regarding our business plans, business strategy, product candidates, blood-brain barrier technology platform, planned and ongoing preclinical studies and clinical trials, anticipated timing of and detail regarding release of data for INVOKE-2 and INFRONT-3, expected milestones, expectations of our collaborations, expectations of our interactions with regulatory authorities, and financial and cash guidance. Such statements are subject to numerous risks and uncertainties, including but not limited to risks and uncertainties as set forth in Alector’s Quarterly Report on Form 10-Q filed on November 6, 2024, with the Securities and Exchange Commission (“SEC”), as well as the other documents Alector files from time to time with the SEC. These documents contain and identify important factors that could cause the actual results for Alector to differ materially from those contained in Alector’s forward-looking statements. Any forward-looking statements contained in this press release speak only as of the date hereof, and Alector specifically disclaims any obligation to update any forward-looking statement, except as required by law.
3Q24 Earnings Release Page 5
Selected Consolidated Balance Sheet Data
(in thousands)
|
|
September 30, |
|
December 31, |
||
|
|
2024 |
|
2023 |
||
Cash, cash equivalents, and marketable securities |
|
$ |
457,202 |
|
$ |
548,861 |
Total assets |
|
|
516,023 |
|
|
621,827 |
Total current liabilities (excluding deferred revenue) |
|
|
87,098 |
|
|
94,973 |
Deferred revenue (including current portion) |
|
|
248,202 |
|
|
293,820 |
Total liabilities |
|
|
397,090 |
|
|
487,669 |
Total stockholders’ equity |
|
|
118,933 |
|
|
134,158 |
Consolidated Statement of Operations Data
(in thousands, except share and per share data)
|
|
Three Months Ended |
|
|
Nine Months Ended |
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
||||
Collaboration revenue |
|
$ |
15,342 |
|
|
$ |
9,109 |
|
|
$ |
46,318 |
|
|
$ |
81,872 |
Operating expense: |
|
|
|
|
|
|
|
|
|
|
|
||||
Research and development |
|
|
47,998 |
|
|
|
46,328 |
|
|
|
139,479 |
|
|
|
144,392 |
General and administrative |
|
|
15,778 |
|
|
|
13,364 |
|
|
|
44,587 |
|
|
|
41,767 |
Total operating expenses |
|
|
63,776 |
|
|
|
59,692 |
|
|
|
184,066 |
|
|
|
186,159 |
Loss from operations |
|
|
(48,434) |
|
|
|
(50,583) |
|
|
|
(137,748 |
) |
|
|
(104,287) |
Other income, net |
|
|
6,214 |
|
|
|
7,360 |
|
|
|
20,853 |
|
|
|
18,876 |
Net loss before income tax |
|
|
(42,220) |
|
|
|
(43,223) |
|
|
|
(116,895 |
) |
|
|
(85,411) |
Income tax expense |
|
|
— |
|
|
|
1,252 |
|
|
|
80 |
|
|
|
3,546 |
Net loss |
|
$ |
(42,220) |
|
|
$ |
(44,475) |
|
|
$ |
(116,975 |
) |
|
$ |
(88,957) |
Net loss per share: |
|
|
|
|
|
|
|
|
|
|
|
||||
Net loss per share, basic and diluted |
|
$ |
(0.43) |
|
|
$ |
(0.53) |
|
|
$ |
(1.22 |
) |
|
$ |
(1.07) |
Shares used in computing net loss per share basic and diluted |
|
|
97,519,595 |
|
|
|
83,927,961 |
|
|
|
96,007,105 |
|
|
|
83,513,954 |
3Q24 Earnings Release Page 6
Alector Contacts:
Alector
Katie Hogan
202-549-0557
katie.hogan@alector.com
1AB (media)
Dan Budwick
973-271-6085
dan@1abmedia.com
Argot Partners (investors)
Laura Perry
212-600-1902
alector@argotpartners.com