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SOUTH SAN FRANCISCO - Alector, Inc. (NASDAQ:ALEC) reported fourth quarter 2024 results that significantly exceeded analyst expectations, sending shares up 1.7% in after-hours trading.
The late-stage clinical biotechnology company focused on neurodegeneration therapies posted adjusted earnings per share of -$0.02, beating the consensus estimate of -$0.60 by $0.58. Revenue for the quarter came in at $54.2 million, well above analyst projections of $16.86 million.
Collaboration revenue drove the top-line beat, rising to $54.2 million compared to $15.2 million in the same quarter last year. The increase was primarily due to higher revenue recognized for the AL002 and latozinemab programs.
"Alector is entering a potentially transformative period for the company, as we continue to advance our clinical programs toward key milestones while also driving the development of our wholly owned, early-stage pipeline," said CEO Arnon Rosenthal.
The company highlighted upcoming catalysts, including topline data from the pivotal INFRONT-3 Phase 3 trial of latozinemab in frontotemporal dementia expected by Q4 2025. Alector also aims to complete enrollment in its PROGRESS-AD Phase 2 trial for early Alzheimer’s disease by mid-2025.
Alector ended 2024 with $413.4 million in cash and investments, which it expects will fund operations through 2026. For 2025, management guided for collaboration revenue of $5-15 million and total expenses of $230-250 million.
The modest 1.7% share price increase suggests investors are cautiously optimistic about Alector’s pipeline progress and financial position heading into a pivotal period for the company.
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