Alector Prices $75M Offering at 7.3% Premium to Raise Cash Into 2027
ALEC sits 85% above its 52-week low of $1.09.
Summary
Alector priced an underwritten offering of 36.6M shares at $2.05, a 7.3% premium to the October 15 close, for roughly $75M in gross proceeds. The premium pricing and participation from TCGX, BVF Partners, ADAR1 Capital Management and Deep Track Capital indicate real demand rather than a distressed discount. The raise follows the October 5 Genentech deal granting worldwide rights to AL050 for $100M upfront and up to $1.17B in milestones, and the October 14 option repricing to $1.87. The company has been burning cash through clinical setbacks, including the nivisnebart Phase 2 discontinuation and the Novartis VHB937 ALS failure, so this capital extends the runway. The offering is expected to close on or about October 19, subject to customary conditions.
At the time of this announcement, ALEC was trading at $2.02 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $213.3M. 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 7 out of 10. Source: GlobeNewswire.