Alector Lands $100M Upfront, Up to $1.17B in Milestones from Genentech for Brain-Penetrant GCase Therapy
ALEC has more than doubled off its 52-week low of $1.09.
Summary
Alector granted Genentech exclusive worldwide rights to AL050, its brain-penetrant GCase enzyme replacement therapy for Parkinson's and other neurodegenerative diseases. The deal brings $100M upfront, up to $1.17B in milestones, and tiered royalties. Alector will pay Spur $15 million plus a percentage in the teens of milestone and other non-royalty partnering income, and royalties on sublicense royalties, under the Spur Agreement. This is a major validation of Alector's Alector Brain Carrier platform and extends cash runway into 2029, a critical lifeline after the GSK collaboration termination and recent clinical failures. Genentech takes on all development, regulatory, manufacturing, and commercialization costs. Alector retains full rights to its ABC platform for its own pipeline. The company will host an R&D webinar on October 13th to detail its wholly owned programs.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — Alector will pay Spur $15 million plus a percentage in the teens of milestone and other non-royalty partnering income, and royalties on sublicense royalties, under the Spur Agreement.
At the time of this announcement, ALEC was trading at $2.37 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $202.1M. The 52-week trading range was $1.09 to $3.40. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: GlobeNewswire.