Alector Swings to $124.6M Q3 Profit on GSK Deferred Revenue, Cash Runway to 2H 2029
ALEC sits 98% above its 52-week low of $1.09 on light trading volume (0.4× avg).
Summary
Alector posted Q3 2026 collaboration revenue of $162.9 million versus $3.3 million a year ago, almost entirely because it recognized the remaining deferred revenue from the GSK collaboration after GSK's July 6 termination notice extinguished its performance obligations. That accounting catch-up drove net income of $124.6 million, or $1.11 per share, against a $34.7 million loss a year earlier — a one-time swing, not recurring revenue. Cash and investments stood at $138.7 million on September 30, before the $100 million Genentech upfront for AL050 and roughly $75 million in offering proceeds; management now says that funds operations into the second half of 2029. The pipeline is now entirely built on the ABC brain-carrier platform, with AL137 (anti-amyloid beta for Alzheimer's) targeting first-in-human dosing in Australia no later than April 2027 and a U.S. IND in Q2 2027, while AL164 (tau) and AL062 (alpha-synuclein) target first-in-human studies in Q2 2028. The company also paid $15.0 million to exercise a Spur Therapeutics option on November 2.
At the time of this announcement, ALEC was trading at $2.16 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $309.9M. The 52-week trading range was $1.09 to $2.76. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.