UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
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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 August 3, 2021, Alector, Inc. (the “Company”) announced its financial results for the quarter ended June 30, 2021. 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 |
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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.
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ALECTOR, INC. |
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Date: August 3, 2021 |
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By: |
/s/ Arnon Rosenthal |
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Arnon Rosenthal, Ph.D. Co-founder and Chief Executive Officer |
Exhibit 99.1
Alector Reports Second Quarter 2021 Financial Results
Presented twelve-month data from ongoing AL001 open-label Phase 2 study in FTD-GRN at the 2021 Alzheimer’s Association International Conference (AAIC)
Announced global collaboration with GSK to co-develop and co-commercialize progranulin-elevating monoclonal antibodies, AL001 and AL101, for a range of neurodegenerative diseases
South San Francisco, California, August 3, 2021 -- Alector, Inc. (Nasdaq: ALEC), a clinical-stage biotechnology company pioneering immuno-neurology, today reported financial results for the second quarter 2021. As of June 30, 2021, Alector’s cash, cash equivalents and investments totaled $319.6 million.
“With the recent presentation of encouraging Phase 2 data for our lead program, AL001 in people with FTD-GRN, at the Alzheimer’s Association International Conference and our announcement of a significant collaboration with GlaxoSmithKline to expand and accelerate the development of AL001 and AL101, we move much closer to realizing the vast potential of our progranulin franchise programs,” said Arnon Rosenthal, Ph.D., co-founder and chief executive officer of Alector. “Our earlier-stage pipeline is also steadily progressing and based on our immuno-neurology expertise and insights into human genetics, we continue working to advance new programs to the clinic, all with the aim of halting the degeneration associated with serious neurological disease.”
Clinical and Corporate Updates
Progranulin Franchise Portfolio
Alector Reports Second Quarter 2021 Financial Results
Page 2
Alzheimer’s Disease Portfolio
Second Quarter 2021 Financial Results
Revenue. Collaboration revenue for the quarter ended June 30, 2021, was $6.6 million, compared to $3.2 million for the same period in 2020. Revenue is recognized as the program costs are incurred by measuring actual costs incurred to date compared to the overall total expected costs to satisfy the performance obligation. Changes in estimates for revenue recognized over time are recognized on a cumulative basis.
R&D Expenses. Total research and development expenses for the quarter ended June 30, 2021, were $47.8 million, compared to $34.1 million for the same period in 2020. This change was mainly driven by an increase in expenses to support advancement of several clinical and preclinical programs, as well as in increase in personnel-related expenses
G&A Expenses. Total general and administrative expenses for the quarter ended June 30, 2021, were $14.1 million, compared to $15.7 million for the same period in 2020. This decrease was primarily
Alector Reports Second Quarter 2021 Financial Results
Page 3
due to reduced legal fees associated with the conclusion of our arbitration proceedings for certain intellectual property matters.
Net Loss. For the quarter ended June 30, 2021, Alector reported a net loss of $55.1 million, compared to a net loss of $45.3 million for the same period in 2020.
Cash Position. Cash, cash equivalents, and marketable securities were $319.6 million as of June 30, 2021.
Updated Cash guidance. Based on the company's cash position as of the end of the second quarter, combined with the anticipated net proceeds expected from the GSK collaboration beginning in the third quarter of 2021, Alector anticipates sufficient cash to fund currently planned operations into mid-2024.
About Alector
Alector is a clinical stage biotechnology company pioneering immuno-neurology, a novel therapeutic approach for the treatment of neurodegenerative diseases. The Company 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 the rejuvenated immune cells to counteract emerging brain pathologies. Immuno-neurology targets immune dysfunction as a root cause of multiple pathologies that are drivers of degenerative brain disorders. The Company’s immuno-neurology product candidates are supported by biomarkers and target genetically defined patient populations in frontotemporal dementia and Alzheimer’s disease. This scientific approach is also the basis for the Company’s immuno-oncology programs. Alector is headquartered in South San Francisco, California. For additional information, please visit www.alector.com.
(1) Paul, Robert, et al, “AAIC 2021 “Twelve month Results from the INFRONT-2 Phase 2 Open-label Clinical Study of AL001 in Frontotemporal Dementia Patients with a Progranulin Mutation (FTD-GRN)”
(2) Guerreiro, et al. “TREM2 Variants in Alzheimer’s Disease” NEJM. 2013; and Jonsson, et al. “Variant of TREM2 associated with the risk of Alzheimer's disease” NEJM 2013
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from current expectations and beliefs, including but not limited to risks and uncertainties related to market conditions, Alector and its business as set forth in our Quarterly Report on Form 10-Q, as filed on August 3, 2021 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.
Alector Reports Second Quarter 2021 Financial Results
Page 4
Selected Consolidated Balance Sheet Data
(in thousands)
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June 30, |
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December 31, |
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2021 |
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2021 |
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Cash, cash equivalents, and marketable securities |
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$ |
319,570 |
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$ |
413,308 |
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Total assets |
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397,113 |
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488,251 |
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Total current liabilities (excluding deferred revenue) |
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48,976 |
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44,202 |
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Deferred revenue (including current portion) |
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121,625 |
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132,303 |
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Total liabilities |
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212,598 |
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220,721 |
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Total stockholders’ equity |
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184,515 |
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267,530 |
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Consolidated Statement of Operations Data
(in thousands, except share and per share data)
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Three Months Ended |
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Six Months Ended |
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2021 |
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2020 |
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2021 |
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2020 |
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Collaboration revenue |
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$ |
6,568 |
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$ |
3,170 |
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$ |
10,678 |
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$ |
10,341 |
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Operating expense: |
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Research and development |
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47,818 |
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34,062 |
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93,551 |
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68,667 |
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General and administrative |
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14,075 |
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15,697 |
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25,087 |
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30,341 |
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Total operating expenses |
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61,893 |
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49,759 |
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118,638 |
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99,008 |
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Loss from operations |
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(55,325 |
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(46,589 |
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(107,960 |
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(88,667 |
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Other income, net |
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178 |
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1,263 |
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642 |
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3,322 |
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Net loss |
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$ |
(55,147 |
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$ |
(45,326 |
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$ |
(107,318 |
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$ |
(85,345 |
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Net loss per share, basic and diluted |
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$ |
(0.69 |
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$ |
(0.58 |
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$ |
(1.35 |
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$ |
(1.11 |
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Shares used in computing net loss per share, basic and diluted |
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79,790,036 |
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78,415,195 |
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79,598,188 |
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76,617,938 |
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Alector Contacts
Michelle Corral
VP, Communications and Investor Relations
650-808-7016
michelle.corral@alector.com
1AB (media)
Dan Budwick
973-271-6085
dan@1abmedia.com
Argot Partners (investors)
Joseph Rayne
Argot Partners
212.600.1902
joseph@argotpartners.com