Full Press Release Details
Alector Reports 2019 Fourth Quarter and Full Year Financial Results and Business Highlights
SOUTH SAN FRANCISCO, Calif., March 24, 2020 -- Alector, Inc. (Nasdaq: ALEC), a clinical- stage biotechnology company pioneering immuno-neurology, today announced company highlights and financial results for the fourth quarter and year ended December 31, 2019.
"At Alector, we envision a world where dementia and neurodegeneration are illnesses of the past, and even amidst the uncertainties we face today in light of the COVID-19 pandemic, we remain committed to this vision. As of today, four of our novel immuno-neurology programs are advancing in the clinic, we have received two Fast Track designations from the FDA, generated sufficient data to support the launch of a pivotal Phase 3 trial in with AL001 in FTD-GRN patients, and expanded our Alzheimer's disease portfolio from two to three prioritized development product candidates," said Arnon Rosenthal, Ph.D., Co-founder, and Chief Executive Officer of Alector. "We look forward to progressing our clinical and research programs forward in 2020, and with our strong cash position and experienced team, we believe we are well-positioned to execute on our milestones throughout the year."
Recent Business Highlights
Progranulin Portfolio: AL001, AL101
Alzheimer's Disease Portfolio: AL002, AL003, AL014
Other Business Highlights
Fourth Quarter and Full Year 2019 Financial Results
Revenue. Collaboration revenue for the quarter ended December 31, 2019, was $6.0 million compared to $9.1 million for the same period in 2018. Collaboration revenue for the year ended December 31, 2019, was $21.2 million compared to $27.5 million for the same period in 2018. This decrease was primarily due to an increase in total expected costs for the AL002 and AL003 programs through the completion of proof-of concept.
R&D Expenses. Total research and development expenses for the quarter ended December 31, 2019, were $25.8 million compared to $24.1 million for the same period in 2018. Total research and development expenses for the year ended December 31, 2019, were $100.5 million compared to $73.0 million for the same period in 2018. This increase was driven by an increase in personnel-related expenses as headcount grew to support the advancement of the clinical and preclinical programs. There was an increase in facilities and other unallocated research and development related to the lease expense for the new headquarters and higher depreciation expense. Expenses for AL101 increased as well as for other early stage programs as investment in research and clinical pipeline continues.
G&A Expenses. Total general and administrative expenses for the quarter ended December 31, 2019 were $12.6 million compared to $4.1 million for the same period in 2018. Total general and administrative expenses for the year ended December 31, 2019 were $35.1 million compared to $11.9 million for the same period in 2018. This increase was primarily due to an increase in personnel-related expenses due to increased headcount. Facilities and general overhead expenses increased due to additional lease expense related to the lease for the new headquarters, higher depreciation expense, directors and officers' insurance, and additional legal, information technology, and human resources costs to operate as a public company.
Net Loss. For the quarter ended December 31, 2019, Alector reported a net loss of $30.5 million, compared to a net loss of $17.4 million for the same period in 2018. For the year ended December 31, 2019, Alector reported a net loss of $105.4 million, compared to a net loss of $52.2 million for the same period in 2018.
Cash Position. Cash, cash equivalents, and marketable securities were $353.1 million as of December 31, 2019.
Alector is a clinical stage biotechnology company pioneering immuno-neurology, a novel therapeutic approach for the treatment of neurodegenerative diseases. Immuno-neurology targets immune dysfunction as a root cause of multiple pathologies that are drivers of degenerative brain disorders. Alector is developing a broad portfolio of programs designed to functionally repair genetic mutations that cause dysfunction of the brain's immune system and enable the rejuvenated immune cells to counteract emerging brain pathologies. The Company's product candidates are supported by biomarkers and target genetically defined patient
populations in frontotemporal dementia and Alzheimer's disease. Alector is headquartered in South San Francisco, California. For additional 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. Such forward-looking statements include, but are not limited to, the ability and timing for the closing of the public offering of common stock. Such statements are subject to numerous important factors, risks and uncertainties that may cause actual events or results to differ materially from current expectations and beliefs, including but not limited to risks and uncertainties related to market conditions and satisfaction of customary closing conditions related to the proposed offering, and other risks and uncertainties related to the offering, Alector and its business as set forth in Alector's registration statement on Form S-1 filed with the Securities and Exchange Commission (the "SEC") on January 29, 2020 and the preliminary prospectus included therein, as well as the other documents Alector files from time to time with the SEC, including Alector's most recent Quarterly Report on Form 10-Q filed with the SEC on November 12, 2019. 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
| December 31, | ||||||||||||
| 2019 | 2018 | |||||||||||
| Cash, cash equivalents, and marketable securities | $ | 353,073 | $ | 290,408 | ||||||||
| Total assets | 421,913 | 308,359 | ||||||||||
| Total current liabilities (excluding deferred revenue) | 31,805 | 13,043 | ||||||||||
| Deferred revenue (including current portion) | 153,401 | 174,620 | ||||||||||
| Total liabilities | 227,170 | 195,237 | ||||||||||
| Convertible preferred stock (1) | - | 210,520 | ||||||||||
| Total stockholders' equity | 194,743 | (97,398 | ) |
(1) Upon the closing of our IPO in February 2019, all of the outstanding shares of our convertible
preferred stock converted into 45,374,836 shares of common stock.
Consolidated Statement of Operations Data
(in thousands, except share and per share data)
| Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||
| (unaudited) | |||||||||||||||||
| Revenue: | |||||||||||||||||
| Collaboration revenue | $ | 6,001 | $ | 9,145 | $ | 21,219 | $ | 27,508 | |||||||||
| Grant revenue | - | - | - | 169 | |||||||||||||
| Total revenue | 6,001 | 9,145 | 21,219 | 27,677 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Research and development | 25,762 | 24,097 | 100,528 | 73,031 | |||||||||||||
| General and administrative | 12,581 | 4,065 | 35,095 | 11,934 | |||||||||||||
| Total operating expenses | 38,343 | 28,162 | 135,623 | 84,965 | |||||||||||||
| Loss from operations | (32,342 | ) | (19,017 | ) | (114,404 | ) | (57,288 | ) | |||||||||
| Other income, net | 1,815 | 1,644 | 9,019 | 5,040 | |||||||||||||
| Net loss | $ | (30,527 | ) | $ | (17,373 | ) | $ | (105,385 | ) | $ | (52,248 | ) | |||||
| Net loss per share, basic and diluted | $ | (0.45 | ) | $ | (1.48 | ) | $ | (1.71 | ) | $ | (4.62 | ) | |||||
| Shares used in computing net loss per share, basic and diluted | 67,879,914 | 11,741,481 | 61,734,492 | 11,302,788 |
Source: Alector, Inc.
Dan Budwick, 973-271-6085