Alector Announces Pricing of Underwritten Offering

The offering price represents a premium of approximately 7.3% over the October 15, 2026 closing price.

Rhea-AI Summary

Alector (Nasdaq: ALEC) priced an underwritten common-stock offering expected to raise $75,030,000.00 in gross proceeds before underwriting discounts, commissions and estimated expenses.

The company is selling 36,600,000 shares at $2.05 per share, a premium of approximately 7.3% over the October 15, 2026 closing price. Alector expects the offering to close on or about October 19, 2026, subject to customary closing conditions. New and existing investors participating include TCGX, BVF Partners, ADAR1 Capital Management and Deep Track Capital. Alector anticipates using net proceeds for general corporate purposes, potentially including product development and manufacturing, working capital and complementary acquisitions or strategic transactions.

2 points · 1 major

MixediHow this balance works

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Offering expected to raise $75,030,000.00 in gross proceeds before underwriting discounts, commissions and estimated expenses. 35% of market cap
• Minor pointOffering price of $2.05 per share represents an approximately 7.3% premium over the October 15, 2026 close.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.Issuance of 36,600,000 common shares at $2.05 per share will dilute existing shareholders.

News Explained

At the second-quarter 2026 cash-use rate, expected gross proceeds equal 199.5 days, compared with 459.6 days for cash and short-term investments at June 30, 2026.

The offering is still pending closing; Alector is selling all 36,600,000 shares itself, so completion would increase the share count and reduce existing holders’ percentage ownership absent offsetting changes.

The release does not state net proceeds; it says a prospectus supplement will be filed, and that document sets final offering terms, including fees.

At the reported second-quarter 2026 operating cash outflow rate, expected gross proceeds equal 199.5 days of outflow, while cash and short-term investments at June 30, 2026 equal 459.6 days; these are historical comparisons, not forecasts of future cash runway.

Sources and calculations

• Alector Announces Pricing of Underwritten Offering (2026-10-16)
• Alector second-quarter 2026 fundamentals (2026Q2)
• Dilution definition (undated)
• Prospectus supplement purpose (undated)

• Offering gross against the last reported quarterly operating outflow, in days at that rate $75,030,000 / ($34,217,000 / 91) = 199.5 days
• Available liquidity against the last reported quarterly operating outflow, in days at that rate ($59,915,000 + $112,883,000) / ($34,217,000 / 91) = 459.6 days

Argus 15 min delay 4 alerts

+4.19% vs previous close $1.99 last price 80.7x rel. volume Open Argus

Details

Market move: ALEC +4.19% vs previous close. common stock offering

$1.84 – $2.03 Day Range

$222.20M Market Cap

On Oct 16, the day this news came out, the latest delayed price for ALEC is 4.19% above the previous close. Our momentum scanner has recorded 4 alerts for this stock so far that day. The latest delayed price is $1.99. Relative volume is exceptionally heavy at 80.7x the average.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Gold for real-time data.

Key Figures

Shares offered: 36,600,000 shares Offering price: $2.05 per share Gross proceeds: $75,030,000.00 +1 more

Shares offered

36,600,000 shares

Common stock offering; all shares offered by Alector

Offering price

$2.05 per share

Common stock offering

Gross proceeds

$75,030,000.00

Before underwriting discounts, commissions, and other estimated offering expenses

Expected closing

October 19, 2026

Expected on or about this date, subject to customary closing conditions

Historical Context

1 past event · Latest: Oct 05

1 event

1. Oct 05

   license agreement

   24h Move

   +8.8%

   Genentech deal included $100 million upfront and projected cash runway into 2029.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

underwritten offering, shelf registration statement, prospectus supplement, blood-brain barrier

4 terms

underwritten offering financial

"pricing of an underwritten offering of common stock"

An underwritten offering is when a bank or group of banks agrees to buy all of a company's new shares or bonds and then resell them to outside investors, guaranteeing the company will raise a specific amount of money. It matters to investors because it adds certainty that the funding will close while increasing the number of shares or debt in the market, which can lower the price per share and change each existing owner's ownership percentage—think of a wholesaler buying an entire shipment from a maker before it reaches stores.

shelf registration statement regulatory

"pursuant to a shelf registration statement previously filed"

A shelf registration statement is a document a company files with regulators that allows it to sell shares or bonds quickly when it’s a good time to raise money. It’s like having a pre-approved plan ready so the company can act fast without going through lengthy paperwork each time they want to sell, making fundraising more flexible.

prospectus supplement regulatory

"A prospectus supplement related to the offering will be filed"

A prospectus supplement is an additional document provided alongside a company's main offering details, offering updated or extra information about a specific financial product being sold. It helps investors understand the latest terms, risks, and details of the investment, similar to how an update or revision clarifies or expands on original instructions, ensuring they have current and complete information before making a decision.

blood-brain barrier medical

"a proprietary blood-brain barrier platform"

A protective barrier of tightly packed cells and supporting tissue that controls what substances in the blood can enter the brain, acting like a security checkpoint that keeps out most pathogens and many drugs while allowing essential nutrients through. For investors, the barrier matters because whether a therapy can cross or safely bypass it often determines clinical success, regulatory approval and commercial potential for treatments of brain disorders.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SOUTH SAN FRANCISCO, Calif., Oct. 16, 2026 (GLOBE NEWSWIRE) -- Alector, Inc. (“Alector,” Nasdaq: ALEC), a biotechnology company focused on developing therapies to counteract the devastating progression of neurodegeneration, today announced the pricing of an underwritten offering of common stock. Alector is selling 36,600,000 shares of common stock. The shares of common stock are being sold at an offering price of $2.05 per share, which represents a premium of approximately 7.3% over the closing price on October 15, 2026. The gross proceeds to Alector from this offering are expected to be $75,030,000.00 before deducting the underwriting discounts and commissions and other estimated offering expenses. All shares of common stock to be sold in the offering are being offered by Alector. The offering is expected to close on or about October 19, 2026, subject to the satisfaction of customary closing conditions.

The financing includes participation from new and existing investors, including TCGX, BVF Partners, ADAR1 Capital Management, and Deep Track Capital, among others.

Alector anticipates using the net proceeds from the offering for general corporate purposes, which may include research, development and manufacturing of our product candidates, working capital, capital expenditures, other corporate expenses, and acquisitions of, or strategic transactions in, complementary products, technologies, or businesses.

Morgan Stanley & Co. LLC and BTIG, LLC are acting as joint lead book-running managers for the offering.

The securities described above are being offered by Alector pursuant to a shelf registration statement previously filed with and declared effective by the Securities and Exchange Commission (the “SEC”). A prospectus supplement related to the offering will be filed with the SEC and will be available on the SEC’s website at www.sec.gov. Copies of the prospectus supplement and the accompanying prospectus relating to this offering may be obtained, when available, from: Morgan Stanley & Co. LLC, 180 Varick Street, 2nd Floor, New York, NY 10014, Attention: Prospectus Department; or by email at prospectus@morganstanley.com; or BTIG, LLC, 65 East 55th Street, New York, New York 10022, or by email at ProspectusDelivery@btig.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Alector

Alector is a biotechnology company focused on developing therapies to counteract the devastating progression of neurodegenerative diseases. Leveraging the principles of genetics, immunology, and neuroscience, the company is advancing a portfolio of programs that aim to remove toxic proteins, replace missing proteins, and restore immune and nerve cell function. Supported by biomarkers, Alector’s product candidates seek to treat a range of indications, such as Alzheimer’s disease and Parkinson's disease. The company is also developing Alector Brain Carrier (ABC), a proprietary blood-brain barrier platform, which is being applied to its preclinical and research pipeline. ABC aims to enhance the delivery of therapeutics, achieve deeper brain penetration and efficacy at lower doses, and ultimately improve patient outcomes while reducing costs. Alector is headquartered in South San Francisco, California.

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements, including statements relating to Alector’s expectations regarding the anticipated use of proceeds, and the completion of the offering. These statements are subject to significant risks and uncertainties, and actual results could differ materially from those projected. Alector cautions investors not to place undue reliance on the forward-looking statements contained in this release. These risks and uncertainties include, without limitation, risks and uncertainties related to market conditions, and the satisfaction of customary closing conditions related to the offering. There can be no assurance that Alector will be able to complete the offering. These and other risks are described more fully in Alector’s filings with the Securities and Exchange Commission (“SEC”), including Alector’s Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and other documents Alector files with the SEC from time to time. Except to the extent required by law, Alector undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made.

Alector Contacts:
Argot Partners (investors)
Laura Perry
alector@argotpartners.com

Argot Partners (media)
David Rosen
646-461-6387
alector@argotpartners.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much is Alector raising in its common-stock offering, and at what price?

Alector expects $75,030,000.00 in gross proceeds from selling 36,600,000 common shares at $2.05 per share. Gross proceeds are before underwriting discounts, commissions and other estimated offering expenses.

When is Alector's underwritten offering expected to close?

Alector expects the offering to close on or about October 19, 2026, subject to satisfaction of customary closing conditions.