Alector Inc (ALEC) Reports Q3 2023 Financial Results with Key Clinical Advancements
Alector Inc (NASDAQ:ALEC) completed enrollment for pivotal INFRONT-3 Phase 3 and INVOKE-2 Phase 2 clinical trials.
Q3 2023 collaboration revenue decreased to $9.1 million from $14.9 million in Q3 2022.
Research and development expenses slightly decreased, while the company reported a net loss of $44.5 million.
Alector's cash reserves of $588.9 million expected to fund operations through 2025.
On November 7, 2023, Alector Inc (NASDAQ:ALEC), a clinical-stage biotechnology company, announced its financial results for the third quarter of 2023. The company highlighted significant clinical progress in its immuno-neurology programs and reported a solid financial position with $588.9 million in cash, cash equivalents, and investments as of September 30, 2023.
Clinical and Corporate Highlights
Alector Inc (NASDAQ:ALEC) has achieved its Q4 2023 target enrollment in the INFRONT-3 Phase 3 latozinemab clinical trial, with 103 symptomatic participants suffering from frontotemporal dementia due to a progranulin gene mutation (FTD-GRN). The company also completed enrollment in the INVOKE-2 Phase 2 clinical trial of AL002 in individuals with early Alzheimer's disease, with data readout expected in Q4 2024.
CEO Arnon Rosenthal, Ph.D., expressed satisfaction with the clinical advancements, particularly the completion of enrollment in the INVOKE-2 trial in collaboration with AbbVie and the INFRONT-3 trial in collaboration with GSK. Chief Medical Officer Gary Romano, M.D., Ph.D., emphasized the potential of their TREM2 and progranulin programs to treat neurodegenerative diseases.
Financial Performance
For the quarter ended September 30, 2023, Alector reported a decrease in collaboration revenue to $9.1 million, down from $14.9 million in the same period of the previous year. This decline was primarily attributed to a decrease in collaboration revenue recognized for the AL101 programs.
Research and development expenses were $46.3 million, a slight decrease from $48.3 million in Q3 2022, reflecting the company's strategy to prioritize late-stage programs. General and administrative expenses also saw a decrease to $13.4 million from $14.3 million in the prior year, mainly due to reduced consulting expenses.
The net loss for the quarter was $44.5 million, or $0.53 per share, an improvement from a net loss of $46.1 million, or $0.56 per share, in Q3 2022. Alector's management reiterated its 2023 financial guidance, expecting collaboration revenue between $90 and $100 million, research and development expenses between $210 million and $220 million, and general and administrative expenses between $60 million and $65 million.
Outlook and Upcoming Events
Alector plans to host two virtual research and development events in December to discuss the companys TREM2 and progranulin programs. These events will feature presentations from scientific and clinical experts on the treatment landscapes for FTD and AD, and the unmet needs in these areas.
The company's financial position remains robust, with cash reserves expected to fund operations through 2025. Alector continues to pioneer immuno-neurology, targeting immune dysfunction as a root cause of neurodegenerative diseases, with a broad portfolio of programs designed to repair genetic mutations and rejuvenate immune cells in the brain.
For additional information and detailed financial tables, readers can visit the Investor section of Alector's website at https://investors.alector.com.
Explore the complete 8-K earnings release (here) from Alector Inc for further details.
This article first appeared on GuruFocus.
