Full Press Release Details
Alector Reports 2020 Fourth Quarter and Full Year Financial Results and Provides Business Update
SOUTH SAN FRANCISCO, Calif., Feb. 25, 2021 -- Alector, Inc. (Nasdaq: ALEC), a clinical-stage biotechnology company pioneering immuno-neurology, today announced business updates and financial results for the fourth quarter ended December 31, 2020.
"In 2020, we made significant progress across all of our key clinical programs," said Arnon Rosenthal, Ph.D., co-founder and chief executive officer of Alector. "As we look ahead to 2021, we will be sharing additional findings from our ongoing Phase 2 study evaluating AL001 in people with frontotemporal dementia at a medical conference this year and are pleased to be advancing our two Alzheimer's disease development programs. Our progress across our immuno-neurology programs continues to put us one step closer to potentially offering new therapeutic options for the millions of patients living with various forms of dementia. In addition, we continue to progress research targets that could have broad implications across neurodegenerative diseases and various forms of cancer, underscoring the broad potential of our research platform."
2020 and Recent Clinical Pipeline Highlights and Business Updates
Progranulin Portfolio:
Alzheimer's Disease Portfolio:
Early-Stage Pipeline with Potential in Neurodegenerative Diseases and Oncology
Ongoing COVID-19 Response Activities:
Fourth Quarter and Full Year 2020 Financial Results
Revenue. Collaboration revenue for the quarter ended December 31, 2020, was $4.9 million, compared to $6.0 million for the same period in 2019. Collaboration revenue for the year ended December 31, 2020, was $21.1 million compared to $21.2 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 December 31, 2020, were $44.4 million, compared to $25.8 million for the same period in 2019. Total research and development expenses for the year ended December 31, 2020, were $156.9 million compared to $100.5 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 December 31, 2020, were $13.2 million, compared to $12.6 million for the same period in 2019. Total general and administrative expenses for the year ended December 31, 2020 were $59.4 million compared to $35.1 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 arbitration proceedings.
Net Loss. For the quarter ended December 31, 2020, Alector reported a net loss of $52.2 million, compared to a net loss of $30.5 million for the same period in 2019. For the year ended December 31, 2020, Alector reported a net loss of $190.2 million, compared to a net loss of $105.4 million for the same period in 2019.
Cash Position. Cash, cash equivalents, and marketable securities were $413.3 million as of December 31, 2020. The Company believes that its cash and investments as of December 31, 2020, will be sufficient to fund its anticipated operations through mid-2022.
Alector is a clinical stage biotechnology company pioneering immuno-neurology, a novel therapeutic approach for the treatment of neurodegenerative diseases. The Company is developing a broad portfolio of innate immune system 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. Immuno-neurology targets immune dysfunction as a root cause of multiple pathologies that are drivers of degenerative brain disorders. The Company's immuno-neurology product candidates are supported by biomarkers and target genetically defined patient populations in frontotemporal dementia and Alzheimer's disease. This scientific approach is also the basis for the Company's immuno-oncology programs. 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-K filed with the Securities and Exchange Commission (the "SEC") on February 25, 2021, 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
| December 31, | December 31, | |||||
| 2020 | 2019 | |||||
| Cash, cash equivalents, and marketable securities | $ | 413,308 | $ | 353,073 | ||
| Total assets | 488,251 | 421,913 | ||||
| Total current liabilities (excluding deferred revenue) | 44,202 | 31,805 | ||||
| Deferred revenue (including current portion) | 132,303 | 153,401 | ||||
| Total liabilities | 220,721 | 227,170 | ||||
| Total stockholders' equity | 267,530 | 194,743 |
Consolidated Statement of Operations Data
(in thousands, except share and per share data)
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Collaboration revenue | $ | 4,853 | $ | 6,001 | $ | 21,098 | $ | 21,219 | ||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 44,383 | 25,762 | 156,869 | 100,528 | ||||||||||||
| General and administrative | 13,228 | 12,581 | 59,403 | 35,095 | ||||||||||||
| Total operating expenses | 57,611 | 38,343 | 216,272 | 135,623 | ||||||||||||
| Loss from operations | (52,758 | ) | (32,342 | ) | (195,174 | ) | (114,404 | ) | ||||||||
| Other income, net | 579 | 1,815 | 4,946 | 9,019 | ||||||||||||
| Net loss | $ | (52,179 | ) | $ | (30,527 | ) | $ | (190,228 | ) | $ | (105,385 | ) | ||||
| Net loss per share, basic and diluted | $ | (0.66 | ) | $ | (0.45 | ) | $ | (2.45 | ) | $ | (1.71 | ) | ||||
| Shares used in computing net loss per share, basic and diluted | 78,998,656 | 67,879,914 | 77,758,806 | 61,734,492 |
Source: Alector, Inc.
Vice President, Communications and Public Affairs