Alector, Inc. Reports Financial Results for Q3 2024, Completes Public Offering and Implements Workforce Reduction

Alector, Inc., a clinical-stage biotechnology company focused on immuno-neurology, reported significant financial developments in its recent 10-Q filing for the quarter ending September 30, 2024. The company experienced a decrease in cash and cash equivalents, which fell to $37.2 million from $74.6 million at the end of 2023. Total current assets also declined to $469.4 million from $565.8 million, while total assets decreased to $516.0 million from $621.8 million over the same period. Despite a reduction in total current liabilities to $142.5 million from $177.9 million, the accumulated deficit increased to $(827.1 million) from $(710.1 million).

Collaboration revenue for the third quarter of 2024 was $15.3 million, up from $9.1 million in the same quarter of 2023, primarily driven by the AL002 program. However, total collaboration revenue for the nine months ended September 30, 2024, decreased to $46.3 million from $81.9 million in the prior year, largely due to a $30.1 million drop in revenue from AL101 programs. Operating expenses for the third quarter rose to $63.8 million from $59.7 million year-over-year, with research and development expenses increasing to $48.0 million from $46.3 million, attributed to the initiation of the PROGRESS-AD Phase 2 clinical trial.

The net loss for the third quarter of 2024 was $42.2 million, an improvement from a net loss of $44.5 million in the same quarter of 2023. For the nine months ended September 30, 2024, the net loss increased to $117.0 million from $89.0 million in the prior year. The company’s total stockholders’ equity decreased to $118.9 million from $134.2 million at the end of 2023.

Strategically, Alector completed a public offering in January 2024, raising approximately $71.1 million, which contributed to a cash position of $457.2 million as of September 30, 2024, expected to fund operations through 2026. The company also implemented a workforce reduction in March 2023, impacting approximately 30 employees, to align resources with strategic priorities. Additionally, Alector is transitioning operations from its Newark, California facility to its South San Francisco headquarters, incurring a $2.2 million impairment charge related to this move.

The company continues to focus on its clinical candidates, including latozinemab, AL002, and AL101, with ongoing trials and collaborations with AbbVie and GSK. However, the absence of approved products for commercial sale remains a significant challenge, impacting revenue generation and profitability.