Full Press Release Details
Alector Reports Second Quarter 2020 Financial Results and Provides Corporate Update
SOUTH SAN FRANCISCO, Calif., Aug. 11, 2020 -- Alector, Inc. (Nasdaq: ALEC), a clinical-stage biotechnology company pioneering immuno-neurology, today announced corporate updates and financial results for the second quarter ended June 30, 2020.
"I am proud of the continued progress across our portfolio, most notably the initiation of our pivotal Phase 3 trial evaluating AL001 for the treatment of people with frontotemporal dementia," said Arnon Rosenthal, Ph.D., co-founder and chief executive officer of Alector. "We are encouraged by the findings from the Phase 2 study of AL001 and look forward to sharing additional data after longer-term treatment and follow up. Our novel immuno-neurology approach and commitment to delivering transformative new therapies to people living with devastating forms of degenerative brain diseases are at the core of what we do. We have taken significant steps to ensure that we will continue to be in a position to achieve our goals, and ultimately, deliver therapies to the people who need them."
Clinical Pipeline Highlights and Corporate Update
Progranulin Portfolio:
Alzheimer's Disease Portfolio:
Notable Clinical and Early-Stage Research:
Ongoing COVID-19 Response Activities:
Second Quarter 2020 Financial Results
Revenue. Collaboration revenue for the quarter ended June 30, 2020, was $3.2 million, compared to $6.9 million for the same period in 2019. Alector recognizes revenue from the upfront payments under an agreement with AbbVie over time as the services are provided. Revenues are recognized as the program costs are incurred by measuring actual costs incurred to date compared to the overall total expected costs to satisfy the performance obligation. Changes in estimates for revenue recognized over time are recognized on a cumulative basis.
R&D Expenses. Total research and development expenses for the quarter ended June 30, 2020, were $34.1 million, compared to $25.6 million for the same period in 2019. This increase was mainly driven by an increase in expenses to support the advancement of the clinical and pre-clinical programs across several therapeutic programs and an increase in personnel-related expenses.
G&A Expenses. Total general and administrative expenses for the quarter ended June 30, 2020, were $15.7 million, compared to $8.4 million for the same period in 2019. This increase was primarily due to an increase in personnel-related expenses due to increased headcount and an increase in legal costs associated with our ongoing arbitration proceedings for certain intellectual property matters.
Net Loss. For the quarter ended June 30, 2020, Alector reported a net loss of $45.3 million, compared to a net loss of $24.6 million for the same period in 2019.
Cash Position. Cash, cash equivalents, and marketable securities were $503.6 million as of June 30, 2020. The Company believes that its cash and investments as of June 30, 2020, will be sufficient to fund its anticipated operations through 2022.
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 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, Alector and its business as set forth in Alector's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission (the "SEC") on August 11, 2020, 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
| June 30, | December 31, | |||||
| 2020 | 2019 | |||||
| Cash, cash equivalents, and marketable securities | $ | 503,640 | $ | 353,073 | ||
| Total assets | 572,030 | 421,913 | ||||
| Total current liabilities (excluding deferred revenue) | 33,117 | 31,805 | ||||
| Deferred revenue (including current portion) | 143,060 | 153,401 | ||||
| Total liabilities | 216,699 | 227,170 | ||||
| Total stockholders' equity | 355,331 | 194,743 |
Consolidated Statement of Operations Data
(in thousands, except share and per share data)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Collaboration revenue | $ | 3,170 | $ | 6,917 | $ | 10,341 | $ | 12,522 | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 34,062 | 25,640 | 68,667 | 46,247 | ||||||||||||
| General and administrative | 15,697 | 8,429 | 30,341 | 14,188 | ||||||||||||
| Total operating expenses | 49,759 | 34,069 | 99,008 | 60,435 | ||||||||||||
| Loss from operations | (46,589 | ) | (27,152 | ) | (88,667 | ) | (47,913 | ) | ||||||||
| Other income, net | 1,263 | 2,592 | 3,322 | 4,793 | ||||||||||||
| Net loss | $ | (45,326 | ) | $ | (24,560 | ) | $ | (85,435 | ) | $ | (43,120 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.58 | ) | $ | (0.36 | ) | $ | (1.11 | ) | $ | (0.77 | ) | ||||
| Shares used in computing net loss per share, basic and diluted | 78,415,195 | 67,327,975 | 76,617,938 | 55,643,352 |
Source: Alector, Inc.
Vice President, Communications and Public Affairs