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Investing.com -- Alector Inc (NASDAQ:ALEC) stock plunged 49% in after-hours trading Tuesday after the clinical-stage biotechnology company announced its Phase 3 trial for latozinemab failed to meet its primary clinical endpoint in treating frontotemporal dementia.
The company reported that its INFRONT-3 trial, evaluating latozinemab (AL001) in patients with frontotemporal dementia due to progranulin gene mutation (FTD-GRN), did not demonstrate efficacy in slowing disease progression. While the treatment showed a statistically significant effect on plasma progranulin concentrations, it failed to produce treatment-related effects on secondary and exploratory endpoints, including fluid biomarkers and volumetric magnetic resonance imaging.
Following these disappointing results, Alector announced it will discontinue the open-label extension portion of the INFRONT-3 trial and the continuation study for latozinemab, which was being developed in collaboration with GSK.
The company is implementing significant operational changes, including reducing its workforce by approximately 49% to focus resources on its highest-priority programs. Additionally, Sara Kenkare-Mitra, Ph.D., President and Head of Research and Development, has resigned effective December 22, 2025.
Alector is now focusing on its remaining pipeline, including nivisnebart (AL101/GSK4527226), which is being evaluated in a Phase 2 trial for early Alzheimer’s disease with completion expected in 2026. The company is also advancing its proprietary blood-brain barrier technology platform with lead candidates AL137 for Alzheimer’s disease and AL050 for Parkinson’s disease.
The company reported approximately $291.1 million in cash, cash equivalents, and short-term investments as of September 30, 2025, which it expects will provide runway through 2027.
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