Alector, Inc. (ALEC)

Alector's stock price has experienced volatility in the past six months. The Phase 3 trial failure of latozinemab (AL001) in October 2025 led to a significant stock price drop and analyst downgrades, and the program was discontinued. Alector reported its second-quarter 2025 financial results in August 2025, with revenue beating expectations and loss per share narrowing, leading to a share gain. Mizuho upgraded ALEC in July 2025, and HC Wainwright & Co. maintained a "Buy" rating in May 2025. ALEC reached its all-time low stock price in April 2025. Prior to the latozinemab failure, Alector's AL002 also failed to meet its primary endpoint in a Phase 2 trial.

As a clinical-stage biopharmaceutical company, Alector does not have commercialized products subject to traditional demand seasonality. Its revenue is primarily derived from strategic collaboration agreements and milestone payments, tied to research and development activities rather than seasonal consumer demand. Financial performance is influenced by R&D activities, clinical trial outcomes, and partnership deals.

Alector, Inc. is a clinical-stage biopharmaceutical company focused on developing therapies for neurodegenerative diseases by targeting the innate immune system. The company's revenue is primarily derived from strategic collaboration agreements with pharmaceutical partners. Its pipeline includes Latozinemab (AL001), which was discontinued after a Phase 3 trial failure, AL101/GSK4527226 (Nivisnebart) in Phase 2 trials, AL002, which was discontinued after failing to meet its primary endpoint, AL003 in Phase 1, AL044 in Phase 1, and the Proprietary Alector Brain Carrier (ABC) platform with lead candidates AL137 and AL050 in preclinical development. Preclinical and research pipeline products include ADP037-ABC, ADP050-ABC, ADP056, ADP063-ABC and ADP064-ABC.

Alector, Inc. is headquartered in South San Francisco, California. Its research and development activities are supported by laboratories in North America and collaborations in Europe. The company aims to bring immuno-neurology therapies to patients worldwide.

Alector's brand reputation has been negatively impacted by clinical trial outcomes, particularly the failure of the Phase 3 INFRONT-3 trial for latozinemab (AL001) in October 2025, leading to program discontinuation and workforce reduction. The failure of the AbbVie-partnered AL002 program for Alzheimer's disease also negatively impacted the company's reputation. These setbacks have raised concerns about the company's pipeline and ability to translate biomarker modulation into clinical benefit.

Alector is primarily owned by institutional shareholders, who hold approximately 69.66% of the company's stock, with 46.74% owned by Alector insiders. Major institutional owners include Fmr Llc, BlackRock, Inc., and Vanguard Group Inc. Key individual owners and insiders include Polaris Venture Management Co VI LLC, Terrance McGuire, Arnon Rosenthal, and Tillman U. Gerngross.