Alector(US:ALEC)2025-11-06 21:17Financial Performance - The company reported net losses of $34.7 million and $105.7 million for the three and nine months ended September 30, 2025, respectively, with an accumulated deficit of $934.8 million as of the same date[93]. - Net loss for the three months ended September 30, 2025, was $34.7 million, an improvement of $7.6 million compared to a net loss of $42.2 million in the same period of 2024[108]. - For the nine months ended September 30, 2025, cash used in operating activities was $142.3 million, primarily due to a net loss of $105.7 million[130]. - For the nine months ended September 30, 2024, cash used in operating activities was $174.9 million, with a net loss of $117.0 million[131]. Revenue and Expenses - The company has not generated any product or royalty revenue from product sales and does not expect to do so until successful development and marketing approval of product candidates[93]. - Collaboration revenue decreased to $3.3 million for the three months ended September 30, 2025, down from $15.3 million in the same period of 2024, a decline of $12.0 million[109]. - For the nine months ended September 30, 2025, collaboration revenue was $14.8 million, down from $46.3 million in 2024, a decrease of $31.5 million[116]. - Research and development expenses were $29.4 million for the three months ended September 30, 2025, compared to $48.0 million for the same period in 2024, a decrease of $18.6 million[110]. - Research and development expenses for the nine months ended September 30, 2025, were $90.6 million, down from $139.5 million in 2024, a decrease of $48.9 million[117]. - Total operating expenses for the nine months ended September 30, 2025, were $131.2 million, compared to $184.1 million in 2024, a decrease of $52.8 million[115]. - General and administrative expenses decreased to $11.5 million for the three months ended September 30, 2025, from $15.8 million in 2024, a reduction of $4.3 million[112]. Cash and Financing - The company’s cash, cash equivalents, and marketable securities totaled $291.1 million as of September 30, 2025, providing runway through 2027[94]. - The company expects to fund operations into the second half of 2027 based on current cash resources, but may seek additional financing opportunistically[124]. - The company entered into an at-the-market sales agreement to sell up to $125 million of common stock, having issued 5,415,162 shares for approximately $14.7 million in net proceeds as of September 30, 2025[126]. - Cash provided by investing activities for the same period was $171.0 million, mainly from maturities of marketable securities totaling $359.0 million[132]. - Cash provided by financing activities was $14.8 million, primarily from proceeds from the sale of securities under a sales agreement with TD Securities[134]. - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $291.1 million[138]. - Approximately $2.8 million of cash exceeded FDIC insurance limits as of September 30, 2025[139]. Development and Research - The company plans to submit an Investigational New Drug (IND) application for the AL137 program in 2026 and for the AL050 program in 2027[87][89]. - The company is co-developing nivisnebart with GSK for early Alzheimer's disease, with a Phase 2 trial completion expected in 2026[83]. - The company’s research and development expenses are primarily related to the discovery and development of product candidates, including nivisnebart[100][101]. - The company is advancing its proprietary Alector Brain Carrier (ABC) technology to enhance therapeutic delivery across the blood-brain barrier[76][85]. Agreements and Deferred Revenue - Under the GSK Agreement, the company received $700 million in upfront payments, with potential additional milestone payments of up to $1.5 billion[96]. - The deferred revenue balance related to the GSK Agreement was $179.0 million as of September 30, 2025, expected to be recognized over the research and development period[99]. Workforce and Operational Changes - The company has committed to a workforce reduction of approximately 47% following the results of the Phase 3 INFRONT-3 clinical trial[94]. Risk Factors - The company has not had a formal hedging program for foreign currency, and foreign currency transaction gains and losses have not been material to financial statements[140]. - The company is exposed to interest rate risks but maintains a portfolio of high credit quality securities to preserve capital[137]. - A 100 basis point change in interest rates would result in a fair value change of approximately $0.8 million due to the company's interest-earning instruments[138].