Alector Reports Third Quarter 2026 Financial Results and Provides Business Update

Quarterly revenue primarily reflected deferred revenue recognition following GSK’s termination, rather than new collaboration payments.

Rhea-AI Summary

Alector (Nasdaq: ALEC) reported third-quarter 2026 net income of $124.6 million while advancing its brain-delivery pipeline and securing additional funding. Earnings were $1.11 per share, versus a $0.34 loss a year earlier. Collaboration revenue rose to $162.9 million from $3.3 million, primarily from recognizing remaining deferred revenue after GSK terminated its agreement.

Alector received $100 million upfront for licensing AL050 to Genentech, with up to $1.17 billion in additional milestones plus tiered royalties. An October offering raised approximately $75.0 million gross through 36,600,000 shares at $2.05 each. September cash and investments were $138.7 million; including subsequent funding, management expects operations to be funded into the second half of 2029. Alector targets AL137 human dosing by April 2027 and AL164 and AL062 human studies in Q2 2028.

24 points · 3 major

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1 major · 6 points

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

Positive

• Major pointAL050 license secured $100 million upfront from Genentech, plus eligibility for up to $1.17 billion in milestones. 39% of market cap
• Major pointApproximately $75.0 million gross raised in the offering completed October 19, 2026. 29% of market cap
• Major pointQ3 collaboration revenue of $162.9 million versus $3.3 million, primarily reflecting deferred revenue recognition after GSK termination.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Cash runway into the second half of 2029 expected by management, including subsequent license and offering funding.
• Moderate pointNine-month research expenses fell to $67.351 million from $90.602 million in 2025.
• Moderate pointNine-month administrative expenses fell to $25.352 million from $40.647 million in 2025.
• Moderate point. Forward-looking: it has not happened yet and may not happen.AL137 human dosing targeted no later than April 2027 in Australian healthy volunteers; ethics registration submitted in October.
• Moderate point. Forward-looking: it has not happened yet and may not happen.AL137 U.S. investigational application targeted for Q2 2027 to enable Phase 1b studies in Alzheimer’s patients.
• Moderate point. Forward-looking: it has not happened yet and may not happen.AL164 and AL062 first-in-human studies targeted for Q2 2028 by Alector.

15 minor points

• Minor pointTiered royalties on net sales accompany the AL050 license; Alector retains its ABC platform rights.
• Minor pointGenentech assumes AL050 development, regulatory, manufacturing and commercialization responsibilities.
• Minor point$2.05 offering price represented approximately 7.3% premium to the October 15, 2026 closing price.
• Minor pointQ3 net income of $124.6 million versus $34.7 million loss; EPS of $1.11 versus $0.34 loss.
• Minor pointQ3 administrative expenses fell to $9.0 million from $11.5 million, mainly reflecting workforce reductions.
• Minor pointNine-month revenue of $167.232 million increased from $14.808 million in 2025.
• Minor pointNine-month net income of $78.680 million versus $105.662 million loss; diluted EPS $0.70 versus $1.05 loss.
• Minor pointTotal liabilities fell to $49.208 million at September 30, 2026, from $262.588 million at year-end 2025.
• Minor pointStockholders’ equity rose to $116.569 million at September 30, 2026, from $30.649 million at year-end 2025.
• Minor pointAL137 completed preclinical studies supporting human testing and was well tolerated with repeated subcutaneous dosing in non-human primates.
• Minor pointAL164 reduced tau genetic instructions by up to 76% across multiple non-human-primate brain regions after subcutaneous dosing.
• Minor pointNo AL164/AL064-related adverse findings observed in non-human primates at doses up to 30 mg/kg siRNA.
• Minor pointAL062 reduced SNCA gene expression by up to 94% across multiple non-human-primate brain regions after subcutaneous dosing.
• Minor pointNo AL062-related adverse findings or treatment-related blood-test changes observed in non-human primates.
• Minor pointADP065 and other earlier-stage programs are advancing toward lead selection.

Negative

• Major point36,600,000 new common shares at $2.05 each dilute existing holders through the October offering.
• Moderate pointGSK collaboration termination ended Alector’s remaining performance obligations under that agreement.
• Moderate pointCash and investments fell to $138.697 million at September 30, 2026, from $256.024 million at year-end 2025.
• Moderate point$15.0 million option exercise payment made to Spur Therapeutics on November 2, 2026. 5.9% of market cap
• Moderate pointLatozinemab and nivisnebart programs are being wound down.
• Minor pointQ3 research expenses rose to $30.0 million from $29.4 million, primarily reflecting Spur option and license fees.

News Explained

$138.7 million as of September 30 was before the $15 million Spur payment made November 2.

Under the AL050 global license, Genentech holds worldwide development and commercialization rights and is responsible for further development, regulatory, manufacturing and commercialization work; Alector retains the ABC platform and full rights to use it across its wholly owned pipeline.

The $138.7 million reported at September 30, 2026 excludes a $15 million option-exercise payment to Spur made on November 2, 2026.

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On Nov 5, the day this news came out, the latest delayed price for ALEC is 1.91% below the previous close. Our momentum scanner has recorded 31 alerts for this stock so far that day. The latest delayed price is $2.05.

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Key Figures

AL050 license economics: $100M upfront; up to $1.17B milestones, plus tiered royalties Underwritten offering: Approximately $75.0M gross proceeds Collaboration revenue: $162.9M vs. $3.3M +4 more

AL050 license economics

$100M upfront; up to $1.17B milestones, plus tiered royalties

Exclusive global Genentech license

Underwritten offering

Approximately $75.0M gross proceeds

Offering closed October 19, 2026

Collaboration revenue

$162.9M vs. $3.3M

Q3 2026 vs. Q3 2025; increase primarily reflected recognition of deferred GSK revenue after termination

Net income (loss)

$124.6M vs. a $34.7M loss

Q3 2026 vs. Q3 2025

AL164 tau mRNA reduction

Up to 76%

Across multiple brain regions in non-human primates after subcutaneous dosing

AL062 SNCA expression reduction

Up to 94%

Across multiple brain regions in non-human primates after subcutaneous dosing

Cash and expected runway

$138.7M at September 30, 2026; operations expected to be funded into the second half of 2029

Runway expectation includes subsequent Genentech upfront payment and offering proceeds

Previous Earnings Reports

1 past event · Latest: Nov 06

Same Type 1 event

1. Nov 06

   Third-quarter earnings

   24h Move

   -1.5%

   Comparable Q3 report showed $3.3M collaboration revenue and a $34.7M net loss.

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

Key Terms

siRNA, intrathecal delivery, GCase, IND application, +1 more

5 terms

siRNA medical

"AL164 (ABC-enabled Tau siRNA for AD and other tauopathies)"

Small interfering RNA (siRNA) is a short strand of genetic material that binds to and destroys the messenger RNA that carries instructions for making a specific protein, effectively switching that gene off. Investors care because siRNA is a platform for precise medicines: successful trials or approvals can create high-value drugs, while delivery challenges, manufacturing complexity, patent positions and regulatory risk can sharply affect a biotech company's prospects.

intrathecal delivery medical

"compared with traditional intrathecal delivery"

Intrathecal delivery is a medical method of giving a drug or therapy directly into the fluid-filled space surrounding the spinal cord and brain, bypassing barriers that keep many medicines out of the central nervous system. For investors, it matters because this route can enable treatments for serious neurological conditions that oral or injected drugs cannot reach, affecting a therapy’s development complexity, regulatory scrutiny, potential market size, and manufacturing or administration costs. Think of it as delivering a package straight to a locked inner room rather than leaving it at the front door.

GCase medical

"brain-penetrant engineered glucocerebrosidase (GCase) ERT"

Glucocerebrosidase (often written GCase) is an enzyme inside cells that helps break down a specific type of fat; think of it as a cellular garbage disposal that clears a particular waste product. When GCase doesn’t work properly because of genetic changes or other factors, waste builds up and is linked to diseases, so investors watch GCase activity as a target for drugs, a biomarker for diagnosis, and a potential driver of value in biotech companies developing related therapies.

IND application regulatory

"targeting submission of a U.S. IND application in Q2 2027"

An Investigational New Drug (IND) application is a formal request to regulators to allow a drug or biologic to be tested in people. It bundles lab and animal safety data, manufacturing details, and a plan for human trials—think of it like a building permit that lets developers move from design to construction. For investors, IND approval is a key milestone that permits clinical testing, reduces regulatory uncertainty, and can materially affect a company’s timeline, risk profile, and valuation.

tiered royalties financial

"as well as tiered royalties on net sales"

Tiered royalties are a payment structure where the percentage of earnings paid as royalties changes based on different levels of sales or production. For example, a company might pay a smaller percentage on initial sales and a higher percentage as sales increase beyond certain points. This system encourages higher sales by adjusting payments, making it important for investors to understand how revenue sharing may vary as a product or project grows.

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Advancing a pipeline built entirely on the Alector Brain Carrier (ABC) blood-brain barrier platform, spanning antibody, enzyme, and siRNA programs, with AL137, Alector's lead ABC-enabled anti-amyloid beta (Aβ) antibody program for Alzheimer's disease (AD), targeting first-in-human dosing in Australia no later than April 2027.

Continued progress across AL164 (ABC-enabled Tau siRNA for AD and other tauopathies) and AL062 (ABC-enabled alpha-synuclein siRNA for Parkinson's disease (PD) and Lewy body dementia (LBD)), each targeting first-in-human studies in Q2 2028.

Entered exclusive global license agreement with Genentech for AL050, Alector's brain-penetrant GCase enzyme replacement therapy (ERT), including a $100 million upfront payment and eligibility for up to $1.17 billion in milestone payments plus tiered royalties on net sales.

Completed underwritten offering for gross proceeds of approximately $75 million, priced at a premium to market, with participation from top-tier new and existing investors.

$138.7 million in cash, cash equivalents and investments as of September 30, 2026;
Together with proceeds from the Genentech license agreement and approximately $75.0 million in gross proceeds from the underwritten offering, expected to fund operations into the second half of 2029.

---

SOUTH SAN FRANCISCO, Calif., Nov. 05, 2026 (GLOBE NEWSWIRE) -- Alector, Inc. (Nasdaq: ALEC), a biotechnology company focused on developing therapies to counteract the devastating progression of neurodegeneration, today reported third quarter 2026 financial results and recent portfolio and business updates. As of September 30, 2026, Alector's cash, cash equivalents, and investments totaled $138.7 million.

“Since our last quarterly update, we exclusively licensed AL050 to Genentech, strengthened our balance sheet, and moved our wholly owned programs closer to the clinic,” said Arnon Rosenthal, Ph.D., Chief Executive Officer of Alector. “The Alector Brain Carrier is designed to address one of the central challenges in treating neurodegenerative disease: delivering enough drug to the brain. With AL137 targeting first-in-human dosing no later than April 2027, and AL164 and AL062 targeting first-in-human studies in Q2 2028, we are advancing toward multiple clinical readouts as we work to bring new options to patients with neurodegenerative diseases.”

Recent Program and Business Updates

Alector Brain Carrier (ABC) Platform

Alector's proprietary ABC blood-brain barrier platform is designed to enhance brain exposure while optimizing both safety and efficacy. Built on the principles of versatility, translatability, and differentiated binding to a distinct region of the transferrin receptor (TfR), the platform offers a broad range of TfR binding affinities, binding kinetics, and engineered formats that can be tailored to the requirements of different therapeutic modalities, including antibodies, enzymes, proteins, and siRNA, while preserving the ability to recruit the brain's immune system when desired. Distinct from our prior clinical programs, every program in Alector's current pipeline is built on ABC.

AL137: ABC-Enabled Anti-Aβ Antibody for AD

• AL137 combines Alector's proprietary high-affinity, fully human antibody that selectively binds pyroglutamate-3 Aβ (PyroGlu3 Aβ), a validated and pathogenic form of Aβ enriched in amyloid plaques, with the ABC platform. AL137 retains full IgG1 Fc effector function, designed to recruit brain immune cells for efficient plaque clearance, and its ABC component binds an epitope intended to reduce co-engagement of TfR on reticulocytes and peripheral immune cells, with the goal of minimizing hematologic adverse effects associated with TfR-targeting antibodies. AL137 is designed for convenient monthly subcutaneous (SC) administration.
  
  
• AL137 completed IND-enabling studies, in which it was well tolerated in non-human primates (NHPs) with repeated SC administration. Alector submitted a Human Research Ethics Committee (HREC) registration in Australia in October 2026 and is targeting first-in-human SC dosing in healthy volunteers in Australia no later than April 2027. Alector is also targeting submission of a U.S. IND application in Q2 2027 to enable Phase 1b studies in AD patients.
  

ABC-Enabled siRNA Platform

• Alector's ABC-enabled siRNA platform is designed for peripheral dosing, offering the potential for more convenient and scalable administration compared with traditional intrathecal delivery, as well as the potential for homogeneous drug distribution throughout the brain. Alector's siRNA programs span multiple disease mechanisms, and include AL164 (tau), AL062 (α-synuclein) and ADP065 (NLRP3).
  

AL164: ABC-Enabled Tau siRNA for AD and Other Tauopathies

• AL164, Alector's lead siRNA program, aims to reduce all forms of toxic tau by degrading tau mRNA and reducing tau protein expression, with the goal of slowing cognitive decline in AD and other tauopathies. AL164 is a modified form of AL064 incorporating a well-validated chemical modification intended to further optimize siRNA stability and Alector is targeting first-in-human studies in Q2 2028.
  
  
• AL164 demonstrated robust and homogeneous tau mRNA knockdown and durable reduction of phospho-Tau 217 in multiple NHP brain regions tested. Subcutaneous dosing of AL164 reduced tau mRNA by up to 76% across multiple NHP brain regions. No AL164/AL064-related adverse findings were observed in NHPs at doses up to 30 mg/kg siRNA, with no test article-related changes in reticulocytes or other hematology parameters.
  

AL062: ABC-Enabled alpha-synuclein siRNA for PD and LBD

• AL062 is designed to silence the production of intracellular α-synuclein, the primary component of Lewy bodies and a likely driver of Parkinson’s disease and Lewy Body Dementia pathology, with peripheral SC dosing and broad brain distribution. Alector is targeting first-in-human studies in Q2 2028.
  
  
• Following subcutaneous dosing in NHPs, AL062 reduced SNCA, the gene that encodes alpha-synuclein, expression by up to 94% across multiple brain regions and was well tolerated, with no AL062-related adverse findings and no test article-related changes in reticulocytes or other hematology parameters.
  

Earlier-Stage siRNA Programs

• Earlier stage programs advancing toward lead selection include ADP065, an NLRP3 siRNA for multiple neurodegenerative conditions, reflecting the broad applicability of the ABC platform across disease mechanisms.
  

AL050 and Genentech License Agreement

• Alector entered into an exclusive global license agreement with Genentech, a member of the Roche Group, granting Genentech worldwide rights to develop and commercialize Alector’s AL050 program, our brain-penetrant engineered glucocerebrosidase (GCase) ERT. Genentech will be responsible for further development, regulatory, manufacturing, and commercialization activities.
  
  
• Under the agreement, Alector has received a $100 million upfront payment and is eligible to receive up to an additional $1.17 billion in development, regulatory, and commercial milestone payments, as well as tiered royalties on net sales. Alector retains ownership of the ABC platform and full rights to apply it across its wholly owned pipeline.
  

Corporate Updates

• On October 16, 2026, Alector priced an underwritten offering of 36,600,000 shares of common stock at $2.05 per share, representing a premium of approximately 7.3% over the closing price on October 15, 2026, for gross proceeds of approximately $75.0 million before deducting underwriting discounts and commissions and other offering expenses. The offering closed on October 19, 2026 and included participation from new and existing investors.
  
  
• Alector hosted a scientific webinar on October 13, 2026, on its wholly owned pipeline, featuring AL137, AL164, and AL062. A replay is available on the Events and Presentations page of the Alector corporate website: https://investors.alector.com/events-and-presentations/events
  

Third Quarter Financial Results

Revenue. Collaboration revenue for the quarter ended September 30, 2026, was $162.9 million, compared to $3.3 million for the same period in 2025. The increase was primarily attributable to the recognition of the remaining deferred revenue under the Collaboration and License Agreement with Glaxo Wellcome UK Limited, a subsidiary of GlaxoSmithKline plc (GSK), following receipt of the July 6, 2026 termination notice from GSK and the extinguishment of the Company’s remaining performance obligations.

R&D Expenses. Total research and development expenses for the quarter ended September 30, 2026, were $30.0 million, compared to $29.4 million for the quarter ended September 30, 2025. The increase was primarily due to the option and license fees paid under the Spur Agreement, partially offset by decreases in latozinemab and nivisnebart program costs due to the wind-down of both programs and lower personnel-related costs resulting from the reductions in force.

G&A Expenses. Total general and administrative expenses for the quarter ended September 30, 2026, were $9.0 million, compared to $11.5 million for the quarter ended September 30, 2025. The decrease was mainly driven by a decrease in personnel-related costs as a result of the reductions in force.

Net Income (Loss). For the quarter ended September 30, 2026, Alector reported a net income of $124.6 million, or $1.11 net income per share, compared to a net loss of $ 34.7 million, or $0.34 net loss per share, for the same period in 2025.

Cash Position. Cash, cash equivalents, and investments were $138.7 million as of September 30, 2026. This amount does not include the $100.0 million upfront payment from Genentech received subsequent to September 30, 2026, the $15.0 million option exercise payment made to Spur Therapeutics Limited on November 2, 2026, or the net proceeds from the October 2026 underwritten offering. Management anticipates that its cash, cash equivalents, and investments, together with the Genentech upfront payment and the net proceeds of the offering, will be sufficient to fund Alector's operations into the second half of 2029.

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. For more information, please visit www.alector.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to, statements regarding our business plans, business strategy, product candidates, research and preclinical pipeline, blood-brain barrier technology platform, planned and ongoing preclinical studies, planned clinical trials, expected milestones, expectations under collaborations and licensing agreements, and financial and cash guidance. Such statements are subject to numerous risks and uncertainties, including but not limited to risks and uncertainties as set forth in Alector’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, with the Securities and Exchange Commission (“SEC”), as well as the other documents Alector files from time to time with the SEC. These documents contain and identify important factors that could cause the actual results for Alector to differ materially from those contained in Alector’s forward-looking statements. Any forward-looking statements contained in this press release speak only as of the date hereof, and Alector specifically disclaims any obligation to update any forward-looking statement, except as required by law.

Selected Consolidated Balance Sheet Data (in thousands)
	September 30,		December 31,
	2026		2025
Cash, cash equivalents, and marketable securities	$	138,697	$	256,024
Total assets		165,777		293,237
Total current liabilities (excluding deferred revenue)		35,415		62,819
Deferred revenue (including current portion)		—		171,221
Total liabilities		49,208		262,588
Total stockholders’ equity		116,569		30,649

Condensed Consolidated Statement of Operations Data (in thousands, except share and per share data)
	Three Months Ended September 30,								Nine Months Ended September 30,
	2026				2025				2026				2025
Collaboration revenue	$	162,866			$	3,260			$	167,232			$	14,808
Operating expense:
Research and development		30,034				29,350				67,351				90,602
General and administrative		8,991				11,518				25,352				40,647
Total operating expenses		39,025				40,868				92,703				131,249
Income (loss) from operations		123,841				(37,608	)			74,529				(116,441	)
Other income, net		819				2,941				4,341				10,779
Income (loss) before income taxes		124,660				(34,667	)			78,870				(105,662	)
Income tax expense		60				—				190				—
Net income (loss)	$	124,600			$	(34,667	)		$	78,680			$	(105,662	)
Net income(loss) per share:
Basic net income (loss) per share	$	1.11			$	(0.34	)		$	0.71			$	(1.05	)
Diluted net income (loss) per share	$	1.11			$	(0.34	)		$	0.70			$	(1.05	)
Weighted-average shares used in calculating:
Basic net income(loss) per share		111,861,933				102,597,601				111,230,090				100,800,863
Diluted net income(loss) per share		112,477,348				102,597,601				111,968,475				100,800,863

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.

What were Alector’s third-quarter 2026 earnings?

Alector reported $124.6 million in net income, or $1.11 per share, compared with a $34.7 million loss, or $0.34 loss per share, a year earlier. Collaboration revenue was $162.9 million versus $3.3 million, primarily reflecting recognition of remaining deferred revenue following GSK’s termination notice.

When does Alector expect AL137, AL164 and AL062 to enter human studies?

Alector targets AL137 first-in-human subcutaneous dosing no later than April 2027 in healthy volunteers in Australia, and AL164 and AL062 first-in-human studies in Q2 2028. The company also targets a U.S. investigational application for AL137 in Q2 2027 to enable Phase 1b studies in Alzheimer’s patients.

Who controls AL050 development after Alector’s Genentech license agreement?

Genentech holds exclusive worldwide development and commercialization rights to AL050 and is responsible for further development, regulatory, manufacturing and commercialization activities. Alector retains ownership of the ABC brain-delivery platform and full rights to apply it across its wholly owned pipeline.