Full Press Release Details
Alector Reports Recent Business Highlights and First Quarter 2019 Financial Results
South San Francisco, Calif. - May 13, 2019 - Alector, Inc. (Nasdaq: ALEC), a clinical stage biotechnology company pioneering immuno-neurology, a novel therapeutic approach for the treatment of neurodegeneration, today announced company highlights and financial results for the first quarter of 2019.
Recent Business Highlights
First Quarter 2019 Financial Results
Revenue. Collaboration and grant revenue for the first quarter of 2019 was $5.6 million compared to $4.9 million for the same period in 2018. This increase was driven primarily by revenue recognized under Alector's collaboration agreement with AbbVie.
R&D Expenses. Total research and development expenses for the first quarter of 2019 were $20.6 million compared to $11.7 million for the same period in 2018. This increase was driven by increased expenditures related to the preparation of certain product candidates for entering into clinical trials and additional expenses to administer and manage existing clinical trials for certain other product candidates. This increase was also related to higher personnel-related expenses, including stock-based compensation, as headcount grew to support the advancement of the clinical and preclinical programs.
G&A Expenses. Total general and administrative expenses for the first quarter of 2019 were $5.8 million compared to $2.4 million for the same period in 2018. This increase was primarily due to increases in personnel-related expenses, including stock-based compensation, as headcount grew to support growth of the company and work related to operating as a public company. There was also an increase in consulting expense to support the growth of the business related to information technology, accounting, human resources, and other administrative functions and increase in facilities expense for the new headquarters.
Net Loss. For the first quarter of 2019, Alector reported a net loss of $18.6 million, compared to a net loss of $8.4 million for the same period in 2018.
Cash Position. Cash, cash equivalents, and marketable securities were $436.6 million as of March 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.
Cautionary Note Regarding 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 are based on our beliefs and assumptions and on information currently available to us on the date of this press release. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. These statements include but are not limited to statements regarding the Company's financial condition and results of operations, and plans for the Company's product candidates, clinical studies and anticipated regulatory and development milestones. Except as required by law, we assume no obligation to update these forward-looking statements publicly, or to update the reasons actual results could differ materially from those anticipated in the forward-looking statements, even if new information becomes available in the future. Important factors that could cause our actual results to differ materially are detailed from time to time in the reports Alector files with the Securities and Exchange Commission, including in our quarterly report on Form 10-Q that is being filed with the Securities and Exchange Commission ("SEC"). Copies of reports filed with the SEC are posted on Alector's website and are available from Alector without charge.
Selected Consolidated Balance Sheet Data
| March 31, | December 31, | |||||||||
| 2019 | 2018 | |||||||||
| Cash, cash equivalents, and marketable securities | $ | 436,595 | $ | 290,408 | ||||||
| Total assets | 496,044 | 308,359 | ||||||||
| Total current liabilities (excluding deferred revenue) | 17,308 | 13,043 | ||||||||
| Deferred revenue (including current portion) | 169,015 | 174,620 | ||||||||
| Total liabilities | 229,858 | 195,237 | ||||||||
| Convertible preferred stock (1) | - | 210,520 | ||||||||
| Total stockholders' equity | 266,186 | (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 March 31, | |||||||||
| 2019 | 2018 | ||||||||
| Revenue: | |||||||||
| Collaboration revenue | $ | 5,605 | $ | 4,751 | |||||
| Grant revenue | - | 169 | |||||||
| Total revenue | 5,605 | 4,920 | |||||||
| Operating expenses: | |||||||||
| Research and development | 20,607 | 11,724 | |||||||
| General and administrative | 5,759 | 2,421 | |||||||
| Total operating expenses | 26,366 | 14,145 | |||||||
| Loss from operations | (20,761 | ) | (9,225 | ) | |||||
| Other income, net | 2,201 | 788 | |||||||
| Net loss | $ | (18,560 | ) | $ | (8,437 | ) | |||
| Net loss per share, basic and diluted | $ | (0.42 | ) | $ | (0.78 | ) | |||
| Shares used in computing net loss per share, basic and diluted | 43,828,106 | 10,858,473 |
Source: Alector, Inc.
Dan Budwick, 973-271-6085