Alector, Inc. reported a net loss of $40.5 million for the first quarter of 2025, compared to a net loss of $36.1 million for the same period in 2024. The company's collaboration revenue significantly decreased to $3.7 million from $15.9 million year-over-year, primarily due to the completion of performance obligations related to the AL002 program and the Phase 2 trial of latozinemab. Total operating expenses also declined to $48.4 million from $59.6 million, driven by reduced research and development costs, which fell to $33.6 million from $45.2 million, reflecting a strategic focus on cost management.
In terms of operational changes, Alector has undergone workforce reductions, impacting approximately 25 employees in March 2025 as part of a broader initiative to align resources with strategic priorities. This restructuring is expected to incur one-time charges of approximately $2.4 million. The company’s total assets decreased to $408.3 million as of March 31, 2025, down from $468.3 million at the end of 2024, largely due to a reduction in marketable securities and cash equivalents.
Alector continues to advance its clinical pipeline, with its lead product candidate, latozinemab, currently in a pivotal Phase 3 trial for frontotemporal dementia (FTD). The company has also amended its collaboration agreement with GlaxoSmithKline (GSK), which includes a commitment to fund up to $140.5 million for the development of AL101 in Alzheimer’s disease. As of March 31, 2025, Alector had cash, cash equivalents, and marketable securities totaling $354.6 million, which is projected to provide operational runway into the second half of 2027.
Looking ahead, Alector anticipates continued investment in its research and development activities, particularly as it seeks regulatory approvals for its product candidates. The company acknowledges the inherent risks associated with drug development, including the potential for clinical trial delays and the need for additional funding to support ongoing operations. Alector's management remains focused on navigating these challenges while pursuing its mission to develop therapies for neurodegenerative diseases.
About Alector, Inc.
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