Alector, Inc.
For the period ended Sep 30, 2026. Filed Nov 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 5, 2026
ALEC$2.29+9.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001193125-26-338052
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-05.
0001193125-26-449871
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 104 previous paragraphs and 112 current paragraphs.
64 unchanged; 32 reworded; 16 added; 8 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 5 previous and 5 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
AL062 Program
Current report
AL062 is an ABC-enabled α-synuclein siRNA program for PD and LBD that aims to silence the production of intracellular α-synuclein, the primary component of Lewy bodies and a likely driver of Parkinson's disease and Lewy Body Dementia pathology. Following SC dosing in NHPs, AL062 reduced SNCA expression by up to 94% across multiple brain regions and was well tolerated, with no AL062-related adverse findings. We are targeting first-in-human studies in the second quarter of 2028.
Current report
AL050 Program and Genentech License Agreement
Current report
AL050 is designed to address GCase deficiency, a driver of neurodegeneration in PD that is most pronounced in, but not limited to, carriers of GBA1 mutations. There is currently no approved therapy that addresses the underlying enzyme deficiency. AL050 combines an Alector-engineered GCase, optimized for greater enzymatic activity and a longer half-life, with ABC, which is designed to transport therapeutics across the blood-brain barrier (BBB). Delivered into the brain, the enzyme is intended to break down glucosylsphingosine and glucosylceramide, lipids that accumulate in neurons and other brain cells upon GCase deficiency and contribute to neurodegeneration, with the aim of reducing cellular dysfunction and slowing disease progression.
Current report
On September 30, 2026, we entered into a License Agreement (Genentech License Agreement) with Genentech, Inc. (Genentech), under which we granted Genentech exclusive worldwide rights to develop and commercialize our AL050 program. Genentech will be responsible for the further development, regulatory, manufacturing, and commercialization activities for the AL050 program. Under the Genentech License Agreement, we received a $100.0 million upfront payment subsequent to September 30, 2026, and are eligible to receive up to an additional $1.17 billion in development, regulatory, and commercial milestone payments, as well as tiered royalties on a specified percentage of net sales at rates ranging from single-digit to double-digit percentages. We assigned ownership of certain of our existing patents specific to the AL050 program to Genentech, and we retain ownership of our ABC platform and the right to apply it across our wholly owned pipeline outside of GCases. For further information, see Note 5, "Collaboration, License, and Option Agreements.
Current report
In addition, on September 30, 2026, we exercised our option under our Option and License Agreement, dated August 14, 2026 (Spur Agreement), with Spur Therapeutics Limited (Spur) to obtain a non-exclusive license under certain Spur patents related to its engineered GCase (Spur Patents). As a result, we paid Spur $15.0 million on November 2, 2026, and are obligated to pay Spur a percentage in the teens of any milestone and other non-royalty payments, and a percentage of any royalties, that we receive from sublicensees of the Spur Patents, including Genentech.
Current report
As of September 30, 2026, we had cash, cash equivalents, and marketable securities of $138.7 million. Together with the $100.0 million upfront payment we received subsequent to September 30, 2026, under the Genentech License Agreement, net of the $15.0 million payment made to Spur under the Spur Agreement on November 2, 2026, and the net proceeds from the October 2026 underwritten offering, we anticipate that our existing cash, cash equivalents, and marketable securities will enable us to fund our operations into the second half of 2029.
Current report
As of September 30, 2026, the Company determined that in accordance with ASC 606, it had no remaining performance obligations under the GSK Agreement, and the remaining deferred revenue of $162.9 million was recognized as collaboration revenue during the three months ended September 30, 2026. We do not expect to derive further revenue from the GSK Agreement.
Current report
Under the Genentech License Agreement, the Company received a $100.0 million upfront payment subsequent to September 30, 2026, and are eligible to receive up to an additional $1.17 billion in development, regulatory, and commercial milestone payments, as well as tiered royalties on net sales of products from the AL050 program at rates ranging from single-digit to double-digit percentages. The achievement of any milestones and the generation of any sales on which royalties may be payable depend on Genentech's successful development and commercialization efforts, which are outside of our control, and may never occur. As a result, we may not receive any milestone payments or royalties under the Genentech License Agreement, and any revenue we recognize under the Genentech License Agreement may vary significantly from period to period.
Current report
Collaboration revenue was $162.9 million for the three months ended September 30, 2026, compared to $3.3 million for the three months ended September 30, 2025. The $159.6 million increase primarily attributable to the recognition of the remaining deferred revenue under the GSK Agreement following receipt of the termination notice and the extinguishment of the Company’s remaining performance obligations.
Current report
Research and development expenses were $30.0 million for the three months ended September 30, 2026, compared to $29.3 million for the three months ended September 30, 2025. The increase of $0.7 million was primarily due to the option and license fees paid under the Spur Agreement, partially offset by decreases in latozinemab and nivisnebart program costs due to the wind-down of both programs and lower personnel-related costs resulting from the reductions in force.
Current report
Collaboration revenue was $167.2 million for the nine months ended September 30, 2026, compared to $14.8 million for the nine months ended September 30, 2025. The $152.4 million increase was primarily attributable to the recognition of the remaining deferred revenue under the GSK Agreement following receipt of the termination notice and the extinguishment of the Company’s remaining performance obligations.
Current report
Subsequent to September 30, 2026, we received a $100.0 million upfront payment under the Genentech License Agreement and on November 2, 2026, we paid Spur $15.0 million.
Current report
In October 2026, the Company completed an underwritten offering of 36.6 million shares of common stock for gross proceeds of approximately $75.0 million before deducting underwriting discounts and commissions and other offering expenses.
Current report
Under the Spur Agreement, we are obligated to pay Spur a percentage in the teens of milestone and other non-royalty payments, and a percentage of royalties, that we receive from sublicensees of the Spur Patents, including Genentech. These obligations will reduce the net amounts we retain from the Genentech License Agreement.
Current report
the amount and timing of payments we are required to make to Spur under the Spur Agreement;
Removed paragraphs (8)
Previous report
AL050 Program
Previous report
AL050 is a lysosomal glucocerebrosidase (GCase) enzyme replacement therapy paired with our proprietary ABC technology in preclinical development for Parkinson’s disease and Lewy body dementia in patients having GBA1 gene mutations that lead to reduced GCase activity. AL050 features an engineered GCase with improved activity and stability, a silenced effector function to maximize safety, and Alector’s ABC that binds a TfR epitope with affinity designed to enhance delivery across the BBB. This mechanism aims to reduce cellular dysfunction and slow disease progression. In preclinical studies to date, AL050 doubled GCase activity in different brain regions in non-human primates without observed adverse effects, including hematologic effects. In a GBA disease mouse model, AL050 surrogate rescued GCase activity and reduced toxic substrate accumulation without hematologic findings. These data support the potential of AL050 as a disease modifying therapy for Parkinson’s disease (PD) and Lewy body dementia (LBD) associated with GBA loss of function mutations, and subsequently for idiopathic PD and LBD.
Previous report
We have selected AL050 as the lead candidate, and we continue to evaluate our timeline to the clinic.
Previous report
Nivisnebart
Previous report
In April 2026, GSK discontinued the global Phase 2 PROGRESS-AD trial of nivisnebart (AL101/GSK4527226), an investigational progranulin-elevating monoclonal antibody, in individuals with early Alzheimer’s disease (AD), following a pre-specified interim futility analysis conducted by an Independent Data Monitoring Committee (IDMC). The IDMC concluded that the trial was unlikely to meet its primary endpoint of slowing disease progression at completion.
Previous report
Collaboration revenue was $3.3 million for the three months ended June 30, 2026, compared to $7.9 million for the three months ended June 30, 2025. The $4.6 million decrease was primarily due to a lower revenue recognized for the AL101 AD program. Revenues are recognized as the program costs are incurred by measuring actual costs incurred to date compared to the overall total expected costs to satisfy each performance obligation.
Previous report
Collaboration revenue was $4.4 million for the six months ended June 30, 2026, compared to $11.5 million for the six months ended June 30, 2025. The $7.1 million decrease was primarily due to a lower revenue recognized for the AL101 AD program. Revenues are recognized as the program costs are incurred by measuring actual costs incurred to date compared to the overall total expected costs to satisfy each performance obligation.
Previous report
Research and development expenses were $37.3 million for the six months ended June 30, 2026, compared to $61.3 million for the six months ended June 30, 2025. The decrease of $24.0 million was mainly due to a decrease in personnel-related costs as a result of the reductions in force as well as a decrease in research and development expenses for the AL002 program and other programs. The decrease was partially offset by an increase in research and development activities for the AL037/AL137 program.
Reworded paragraphs (32)
Previous wording
We are a biotechnology company focused on discovering and developing therapies for neurodegenerative diseases with high unmet medical need, including Alzheimer’s disease and Parkinson’s disease. Our wholly owned pipeline is built around the Alector Brain Carrier (ABC) platform, a proprietary blood-brain barrier (BBB) technology that enables diverse therapeutic modalities, including antibodies, enzymes, proteins and siRNA, to reach genetically validated targets in the central nervous system.
Current wording
We are a biotechnology company focused on discovering and developing therapies for neurodegenerative diseases with high unmet medical need, including Alzheimer’s disease and Parkinson’s disease. Our pipeline is built around the Alector Brain Carrier (ABC) platform, a proprietary blood-brain barrier (BBB) technology that enables diverse therapeutic modalities, including antibodies, enzymes, proteins and siRNA, to reach genetically validated targets in the central nervous system. On September 30, 2026, we licensed our AL050 program, our ABC-enabled glucocerebrosidase (GCase) enzyme replacement therapy, to Genentech, Inc. (Genentech). Our other programs are wholly owned.
Previous wording
Following comparative evaluation of AL137 and AL037, we selected AL137 as the lead development candidate and subcutaneous administration as the intended clinical route, with AL037 designated as the backup development candidate. Following successful completion of IND-enabling studies, we intend to advance AL137 for submission of an Investigational New Drug (IND) application, targeted for the first quarter of 2027. We also target first-in-human dosing in Australia no later than April 2027.
Current wording
Following comparative evaluation of AL137 and AL037, we selected AL137 as the lead development candidate and subcutaneous (SC) administration as the intended clinical route, with AL037 designated as the backup development candidate. AL137 completed IND-enabling studies, in which it was well tolerated in nonhuman primates (NHPs) with repeated SC administration. We submitted a registration to a Human Research Ethics Committee (HREC) in Australia in October 2026 and are targeting first-in-human SC dosing in Australia by April 2027. We are also targeting submission of a U.S. Investigational New Drug (IND) application in the second quarter of 2027 to enable Phase 1b studies in AD patients.
Previous wording
We continue to advance our ABC-enabled siRNA platform. The platform is designed for peripheral dosing, offering the potential for more convenient and scalable administration compared with traditional intrathecal delivery, as well as the potential for homogeneous drug distribution throughout the brain. Our siRNA programs span multiple disease mechanisms, led by our tau program, AL064/AL164, and including earlier-stage programs advancing toward lead selection: ADP062-ABC, an alpha-synuclein siRNA for PD, and ADP065-ABC, an NLRP3 siRNA for multiple neurodegenerative conditions. Together, these programs reflect the broad applicability of the ABC platform across disease mechanisms. We continue to evolve our research and development plans and timing for each of our ABC-enabled siRNA programs.
Current wording
We continue to advance our ABC-enabled siRNA platform. The platform is designed for peripheral dosing, offering the potential for more convenient and scalable administration compared with traditional intrathecal delivery, as well as the potential for homogeneous drug distribution throughout the brain. Our siRNA programs, which span multiple disease mechanisms, include AL164, our tau siRNA program for AD and other tauopathies; AL062, our alpha-synuclein siRNA program for Parkinson's disease (PD) and Lewy body dementia (LBD); and ADP065-ABC, an earlier-stage NLRP3 siRNA program for multiple neurodegenerative conditions. Together, these programs reflect the broad applicability of the ABC platform across disease mechanisms. We continue to evolve our research and development plans and timing for each of our ABC-enabled siRNA programs.
Previous wording
Our lead siRNA program, AL064/AL164, is a tau siRNA program for AD and other tauopathies. AL064/AL164 aims to reduce all forms of toxic tau by degrading tau mRNA and reducing tau protein expression and slow cognitive decline in AD and other tauopathies. AL064 demonstrated robust and homogeneous tau mRNA knockdown and durable reduction of phospho-Tau 217 in multiple NHP brain regions tested. AL064 was modified to incorporate a well-validated chemical modification intended to further optimize siRNA stability, and this modified form of AL064 is advancing into IND-enabling studies as AL164.
Current wording
Our lead siRNA program, AL164, is a tau siRNA program for AD and other tauopathies. AL164 aims to reduce all forms of toxic tau by degrading tau mRNA and reducing tau protein expression and aims to slow cognitive decline in AD and other tauopathies. AL064 demonstrated robust and homogeneous tau mRNA knockdown and durable reduction of phospho-Tau 217 in multiple NHP brain regions tested. AL164, which incorporates a well-validated chemical modification intended to further optimize AL064’s siRNA stability, is targeted for first-in-human studies in the second quarter of 2028.
Previous wording
Our operations have been financed primarily through our collaboration with GSK, for which GSK provided written notice of termination on July 6, 2026, our previous collaboration with AbbVie, entered into in October 2017 and terminated in February 2025, the issuance and sale of convertible preferred stock and of common stock upon the completion of our initial public offering (IPO), and follow-on equity financings.
Current wording
Our operations have been financed primarily through our collaboration with GSK, for which GSK provided written notice of termination on July 6, 2026, following discontinuation of the global Phase 2 PROGRESS-AD trial of nivisnebart (AL101/GSK4527226) in April 2026; our previous collaboration with AbbVie, entered into in October 2017 and terminated in February 2025; the issuance and sale of convertible preferred stock and of common stock upon the completion of our initial public offering (IPO); follow-on equity financings, and the Genentech License Agreement.
Previous wording
To date, we have not had any products approved for sale and have not generated any product or royalty revenue from product sales. Further, we do not expect to generate revenue from product sales until such time, if ever, that we are able to successfully complete the development and obtain marketing approval for one of our product candidates. We will continue to require additional capital to develop our product candidates, advance our research and preclinical programs, and fund operations for the foreseeable future. We have incurred net losses in each year since inception, and we expect to continue to incur net losses for the foreseeable future. Our ability to generate product revenue will depend on the successful development and eventual commercialization of one or more of our product candidates. Our net losses were $23.0 million and $45.9 million for the three and six months ended June 30, 2026, respectively. Our net losses were $30.5 million and $71.0 million for the three and six months ended June 30, 2025, respectively. As of June 30, 2026, we had an accumulated deficit of $1,018.0 million. Substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations. We expect our expenses will increase substantially in connection with our ongoing activities, as we:
Current wording
To date, we have not had any products approved for sale and have not generated any product or royalty revenue from product sales. Further, we do not expect to generate revenue from product sales until such time, if ever, that we are able to successfully complete the development and obtain marketing approval for one of our product candidates. We will continue to require additional capital to develop our product candidates, advance our research and preclinical programs, and fund operations for the foreseeable future. We have incurred net losses in each year since inception, and we expect to continue to incur net losses for the foreseeable future. Our ability to generate product revenue will depend on the successful development and eventual commercialization of one or more of our product candidates. Our net income was $124.6 million and $78.7 million for the three and nine months ended September 30, 2026, respectively. Our net losses were $34.7 million and $105.7 million for the three and nine months ended September 30, 2025, respectively. As of September 30, 2026, we had an accumulated deficit of $893.4 million. Substantially all of our net losses have resulted from costs incurred in connection with our research and development programs and from general and administrative costs associated with our operations. We expect our expenses will increase substantially in connection with our ongoing activities, as we:
Previous wording
On March 7, 2025, we committed to a plan to reduce our workforce by approximately 13% to better align our resources with our strategic priorities, including the advancement of our preclinical and research pipeline. We initiated that reduction in force impacting approximately 25 employees across the organization. On October 21, 2025, we committed to a plan to reduce our workforce by approximately 47% in order to align resources with the Company’s strategic priorities following the results of the Phase 3 INFRONT-3 clinical trial evaluating the safety and efficacy of latozinemab (AL001) in individuals with frontotemporal dementia due to a GRN mutation (FTD-GRN). Our cash, cash equivalents, and marketable securities as of June 30, 2026, totaled $172.8 million, which we anticipate provides runway at least through 2027.
Current wording
On October 21, 2025, we committed to a plan to reduce our workforce by approximately 47% in order to align resources with the Company’s strategic priorities following the results of the Phase 3 INFRONT-3 clinical trial evaluating the safety and efficacy of latozinemab (AL001) in individuals with frontotemporal dementia due to a GRN mutation (FTD-GRN).
Previous wording
We have not generated any product or royalty revenue from product sales and do not expect to do so in the near future. Our revenue to date has been primarily related to the AbbVie Agreement and GSK Agreement for the license and co-development of product candidates with those parties. We recognized revenue from the upfront payments and the milestone payment received from AbbVie over time as services were provided. We recognize revenue from the upfront payments from GSK at a point in time for a development license and over time for research and development services. Revenues for research and development services are recognized as the program costs are incurred by measuring actual costs incurred to date compared to the overall total expected costs to satisfy the performance obligation.
Current wording
We have not generated any product or royalty revenue from product sales and do not expect to do so in the near future. Our revenue to date has been primarily related to the AbbVie Agreement and GSK Agreement for the license and co-development of product candidates with those parties. We recognized revenue from the upfront payments and the milestone payment received from AbbVie over time as services were provided. We recognized revenue from the upfront payments from GSK at a point in time for a development license and over time for research and development services. Revenues for research and development services were recognized as the program costs were incurred by measuring actual costs incurred to date compared to the overall total expected costs to satisfy the performance obligation.
Previous wording
Under the terms of the GSK Agreement, the Company received $700 million in upfront payments, of which $500 million was received in August 2021 and $200 million was received in January 2022. The Company had been eligible for but did not achieve up to an additional $1.5 billion in clinical development, regulatory, and commercial launch-related milestone payments; an equal share of profits and losses in the United States; and tiered royalties outside the United States. The Company and GSK jointly conducted certain development activities under the Agreement and shared development costs 60% by GSK and 40% by the Company, except that, subject to the GSK Amendment, the Company solely bore the development costs of initial Phase 2 clinical trials. Under the terms of the GSK Amendment, the Company was responsible for funding and sharing in GSK’s and the Company’s development costs up to $140.5 million for the conduct of the Phase 2 clinical trial of nivisnebart in AD.
Current wording
Under the terms of the GSK Agreement, the Company received $700 million in upfront payments, of which $500 million was received in August 2021 and $200 million was received in January 2022. The Company had been eligible for but did not achieve up to an additional $1.5 billion in clinical development, regulatory, and commercial launch-related milestone payments; an equal share of profits and losses in the United States; and tiered royalties outside the United States. The Company and GSK jointly conducted certain development activities under the Agreement and shared development costs 60% by GSK and 40% by the Company, except that, subject to the GSK Amendment, the Company solely bore the development costs of initial Phase 2 clinical trials. Under the terms of the GSK Amendment, the Company was responsible for funding and sharing in GSK’s and the Company’s development costs up to $140.5 million for the conduct of the Phase 2 clinical trial of nivisnebart in AD. As of September 30, 2026, the Company has funded the full $140.5 million amount of its funding and cost sharing obligation.
Previous wording
We expect that our revenue will be derived primarily from the GSK Agreement in the near term. The balance of deferred revenue was $162.9 million as of June 30, 2026, related to the GSK Agreement. As of that date, the Company expected to recognize this deferred revenue over the research and development period of the programs through the completion of the initial Phase 2 clinical trials for specified indications for latozinemab and nivisnebart, or earlier upon extinguishment of the related performance obligations.
Current wording
We expect that our revenue for the next several years will be derived primarily from the Genentech License Agreement.
Previous wording
At this time, we cannot reasonably estimate or know the nature, timing, and estimated costs of the efforts that will be necessary to complete the development of, and obtain regulatory approval for, any of our product candidates. We expect our research and development expenses relating to latozinemab, nivisnebart, and AL002 to decrease in the foreseeable future as a result of the discontinuation and wind-down of clinical trials for latozinemab, nivisnebart, and AL002. However, we continue to invest in research and development activities related to programs in our research and preclinical pipeline and to the advancement of those programs into clinical trials.
Current wording
At this time, we cannot reasonably estimate or know the nature, timing, and estimated costs of the efforts that will be necessary to complete the development of, and obtain regulatory approval for, any of our product candidates. We expect our research and development expenses relating to latozinemab and nivisnebart, to decrease in the foreseeable future as a result of the discontinuation and wind-down of clinical trials for latozinemab and nivisnebart. However, we continue to invest in research and development activities related to programs in our research and preclinical pipeline and to the advancement of those programs into clinical trials.
Previous wording
General and administrative expenses were $8.3 million for the three months ended June 30, 2026 and $14.4 million for the three months ended June 30, 2025. The decrease of $6.1 million was mainly driven by a decrease in personnel-related costs as a result of the reductions in force.
Current wording
General and administrative expenses were $9.0 million for the three months ended September 30, 2026 and $11.5 million for the three months ended September 30, 2025. The decrease of $2.5 million was mainly driven by a decrease in personnel-related costs as a result of the reductions in force.
Previous wording
Other income, net was $1.5 million for the three months ended June 30, 2026, compared to $3.6 million for the three months ended June 30, 2025. The decrease of $2.1 million was mainly due to lower interest income from a reduction in marketable securities used to fund our operations.
Current wording
Other income, net was $0.8 million for the three months ended September 30, 2026, compared to $2.9 million for the three months ended September 30, 2025. The decrease of $2.1 million was mainly due to lower interest income from a reduction in marketable securities used to fund our operations and a loss on extinguishment of debt related to the repayment of our term loan with Hercules Capital, Inc.
Previous wording
Income tax expense was $0.1 million for the three months ended June 30, 2026, compared to zero income tax expense for the three months ended June 30, 2025.
Current wording
Income tax expense was less than $0.1 million for the three months ended September 30, 2026, compared to zero income tax expense for the three months ended September 30, 2025.
Previous wording
Comparison of the Six Months Ended June 30, 2026 and 2025
Current wording
Comparison of the Nine Months Ended September 30, 2026 and 2025
Previous wording
Research and development expenses were $19.5 million for the three months ended June 30, 2026, compared to $27.6 million for the three months ended June 30, 2025. The decrease of $8.1 million was mainly due to a decrease in personnel-related costs as a result of the reductions in force as well as a decrease in facilities and other expenses.
Current wording
Research and development expenses were $67.4 million for the nine months ended September 30, 2026, compared to $90.6 million for the nine months ended September 30, 2025. The decrease of $23.2 million was mainly due to a decrease in personnel-related costs as a result of the reductions in force.
Previous wording
General and administrative expenses were $16.4 million for the six months ended June 30, 2026 and $29.1 million for the six months ended June 30, 2025. The decrease of $12.7 million was mainly driven by a decrease in personnel-related costs as a result of the reductions in force.
Current wording
General and administrative expenses were $25.4 million for the nine months ended September 30, 2026 and $40.6 million for the nine months ended September 30, 2025. The decrease of $15.2 million was mainly driven by a decrease in personnel-related costs as a result of the reductions in force.
Previous wording
Other income, net was $3.5 million for the six months ended June 30, 2026, compared to $7.8 million for the six months ended June 30, 2025. The decrease of $4.3 million was mainly due to lower interest income from a reduction in marketable securities used to fund our operations.
Current wording
Other income, net was $4.3 million for the nine months ended September 30, 2026, compared to $10.8 million for the nine months ended September 30, 2025. The decrease of $6.5 million was mainly due to lower interest income from a reduction in marketable securities used to fund our operations and a loss on extinguishment of debt related to the repayment of our term loan with Hercules Capital, Inc.
Previous wording
Income tax expense was $0.1 million for the six months ended June 30, 2026, compared to zero income tax expense for the six months ended June 30, 2025.
Current wording
Income tax expense was $0.2 million for the nine months ended September 30, 2026, compared to zero income tax expense for the nine months ended September 30, 2025.
Previous wording
As of June 30, 2026, we had $172.8 million of cash, cash equivalents, and marketable securities. As of June 30, 2026, we had an accumulated deficit of $1,018.0 million.
Current wording
As of September 30, 2026, we had $138.7 million of cash, cash equivalents, and marketable securities. As of September 30, 2026, we had an accumulated deficit of $893.4 million.
Previous wording
Our primary uses of cash are to fund our operations, which consist primarily of research and development expenditures related to our programs, and to a lesser extent, general and administrative expenditures. We expect our expenses relating to nivisnebart, latozinemab, and AL002 to decrease in the foreseeable future as a result of the discontinuation and wind-down of clinical trials for nivisnebart, latozinemab, and AL002. However, we continue to invest in research and development activities related to programs in our research and preclinical pipeline and the advancement of those programs into clinical trials. In addition, we expect to incur costs associated with operating as a public company.
Current wording
Our primary uses of cash are to fund our operations, which consist primarily of research and development expenditures related to our programs, and to a lesser extent, general and administrative expenditures. We expect our expenses relating to nivisnebart and latozinemab to decrease in the foreseeable future as a result of the discontinuation and wind-down of clinical trials for nivisnebart and latozinemab. However, we continue to invest in research and development activities related to programs in our research and preclinical pipeline and the advancement of those programs into clinical trials. In addition, we expect to incur costs associated with operating as a public company.
Previous wording
Based on our current operating plan, we believe that our existing cash, cash equivalents, and marketable securities will enable us to fund our operations and capital expenditure requirements at least through 2027. We reduced our workforce to better align our resources with our current strategic priorities and maintain our expectations with respect to our ability to fund our operations. We have based this estimate on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we currently expect. We may also choose to seek additional financing opportunistically. We may seek to raise capital through public equity or debt financings, license agreements, collaboration agreements or other arrangements with other companies, asset sales, or through other sources of financing. We have an omnibus shelf registration statement on Form S-3 with the SEC, which became effective on April 30, 2026, which permits us to issue up to $400 million in common stock, other equity securities and/or debt securities.
Current wording
Based on our current operating plan, we believe that our existing cash, cash equivalents, and marketable securities, together with the upfront payment received subsequent to September 30, 2026, under the Genentech License Agreement, net of the payment made under the Spur Agreement, and the net proceeds from the October 2026 underwritten offering, will enable us to fund our operations and capital expenditure requirements into the second half of 2029. We reduced our workforce to better align our resources with our current strategic priorities and maintain our expectations with respect to our ability to fund our operations. We have based this estimate on assumptions that may prove to be wrong, and we could utilize our available capital resources sooner than we currently expect. We may also choose to seek additional financing opportunistically. We may seek to raise capital through public equity or debt financings, license agreements, collaboration agreements or other arrangements with other companies, asset sales, or through other sources of financing. We have an omnibus shelf registration statement on Form S-3 with the SEC, which became effective on April 30, 2026, which permits us to issue up to $400 million in common stock, other equity securities and/or debt securities.
Previous wording
On November 7, 2023, we entered into an at-the-market sales agreement with TD Cowen, pursuant to which we may offer and sell from time to time through TD Cowen up to $125,000,000 of shares of our common stock, in such share amounts as we may specify by notice to TD Cowen (the 2023 Sales Agreement). As of June 30, 2026, we had issued an aggregate of 7,110,162 shares and received approximately $20.0 million in net proceeds under the 2023 Sales Agreement, all of which were issued during 2025.
Current wording
On November 7, 2023, we entered into an at-the-market sales agreement with TD Cowen, pursuant to which we may offer and sell from time to time through TD Cowen up to $125,000,000 of shares of our common stock, in such share amounts as we may specify by notice to TD Cowen (the 2023 Sales Agreement). Prior to its termination, we had issued an aggregate of 7,110,162 shares and received approximately $20.0 million in net proceeds under the 2023 Sales Agreement, all of which were issued during 2025.
Previous wording
On January 17, 2024, we entered into an underwriting agreement with Cantor Fitzgerald & Co. (Cantor), pursuant to which we offered and sold 10,869,566 shares of the Company’s common stock at a price per share of $6.57 paid by Cantor. Additionally, on November 14, 2024, we entered into a loan agreement with our subsidiary, Alector LLC, as a co-borrower, the Lenders, and Hercules Capital, Inc. (Hercules), in its capacity as administrative agent and collateral agent for itself and the Lenders (the Loan Agreement), pursuant to which we could access up to two tranches of Term Loans in an aggregate principal amount of up to $50,000,000, subject to the satisfaction of certain conditions. We borrowed $10,000,000 principal amount of the first tranche of Term Loans on the closing date of the Loan Agreement. On July 8, 2026, the Company entered into a payoff letter with Hercules and paid the final payoff amount. All obligations under the Loan Agreement were paid in full, all liens and security interests granted to secure such obligations were terminated, and the Loan Agreement and related loan documents were terminated.
Current wording
On January 17, 2024, we entered into an underwriting agreement with Cantor Fitzgerald & Co. (Cantor), pursuant to which we offered and sold 10,869,566 shares of the Company’s common stock at a price per share of $6.57 paid by Cantor. Additionally, on November 14, 2024, we entered into a loan agreement with our subsidiary, Alector LLC, as a co-borrower, the Lenders, and Hercules Capital, Inc. (Hercules), in its capacity as administrative agent and collateral agent for itself and the Lenders (the Loan Agreement), pursuant to which we could access up to two tranches of Term Loans in an aggregate principal amount of up to $50,000,000, subject to the satisfaction of certain conditions. We borrowed $10,000,000 principal amount of the first tranche of Term Loans on the closing date of the Loan Agreement. On July 8, 2026, we entered into a payoff letter with Hercules and paid the final payoff amount. All obligations under the Loan Agreement were paid in full, all liens and security interests granted to secure such obligations were terminated, and the Loan Agreement and related loan documents were terminated.
Previous wording
the timing and amount of milestone and other payments we may receive under any collaboration arrangements;
Current wording
the timing and amount of milestone and other payments we may receive under any collaboration, licensing, or other arrangements;
Previous wording
For the six months ended June 30, 2026, cash used in operating activities was $84.0 million. This was mainly due to the net loss of $45.9 million. We also had a decrease in refund liability to collaboration partner of $15.4 million, a decrease in accrued liabilities and accrued clinical supply costs of $13.8 million, and a decrease in collaboration payable of $13.6 million. This was offset by a non-cash charge of $5.5 million for stock-based compensation.
Current wording
For the nine months ended September 30, 2026, cash used in operating activities was $108.2 million. We had net income during the period of $78.7 million. We also had an increase in license fee payable of $15.0 million related to the Spur Option and License Agreement and a decrease in prepaid expenses and other current assets of $3.8 million. In addition, we had a decrease in deferred revenue of $167.2 million as revenue was recognized related to the GSK Termination Agreement, a decrease in collaboration payable of $16.0 million, a decrease in refund liability to collaboration partner of $15.4 million, a decrease in accrued liabilities and accrued clinical supply costs of $14.3 million, and a decrease in lease liabilities of $5.5 million. This was offset by a non-cash charge of $7.5 million for stock-based compensation.
Previous wording
For the six months ended June 30, 2025, cash used in operating activities was $109.8 million. This was mainly due to the net loss of $71.0 million. We also had a decrease in refund liability to collaboration partner of $26.1 million, a decrease in deferred revenue of $11.5 million, and a decrease in accrued liabilities and accrued clinical supply costs of $16.5 million. This was offset by a non-cash charge of $15.4 million for stock-based compensation.
Current wording
For the nine months ended September 30, 2025, cash used in operating activities was $142.3 million. This was mainly due to the net loss of $105.7 million. We also had a decrease in refund liability to collaboration partner of $38.1 million, a decrease in deferred revenue of $14.8 million, and a decrease in accrued liabilities and accrued clinical supply costs of $14.0 million. This was offset by a non-cash charge of $21.8 million for stock-based compensation.
Previous wording
For the six months ended June 30, 2025, cash provided by investing activities of $121.5 million was primarily related to the maturities of marketable securities of $250.4 million offset by purchases of marketable securities of $131.9 million.
Current wording
For the nine months ended September 30, 2026, cash provided by investing activities of $128.2 million was primarily related to the maturities of marketable securities of $213.4 million offset by purchases of marketable securities $85.4 million.
Previous wording
For the six months ended June 30, 2026, cash provided by investing activities of $78.0 million was primarily related to the maturities of marketable securities of $157.9 million offset by purchases of marketable securities of $79.7 million.
Current wording
For the nine months ended September 30, 2025, cash provided by investing activities of $171.0 million was primarily related to the maturities of marketable securities of $358.9 million offset by purchases of marketable securities of $190.8 million.
Previous wording
For the six months ended June 30, 2026, cash provided by financing activities of less than $0.1 million was from the proceeds from the exercise of options to purchase common stock and the purchase of common stock under the employee stock purchase plan.
Current wording
For the nine months ended September 30, 2026, cash used in financing activities of $10.3 million was primarily due to the repayment in full of the $10.0 million outstanding principal under the Loan Agreement, together with end of term and prepayment charges, partially offset by proceeds from the exercise of options to purchase common stock and the purchase of common stock under the employee stock purchase plan.
Previous wording
For the six months ended June 30, 2025, cash provided by financing activities of $0.1 million was primarily from the proceeds from the purchase of common stock under the employee stock purchase plan.
Current wording
For the nine months ended September 30, 2025, cash provided by financing activities of $14.8 million was primarily from the proceeds from the sale of securities pursuant to the sales agreement with TD Cowen.
Previous wording
Other than the disclosures below, there have been no material changes to our critical accounting policies and estimates from those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K, as filed with the SEC on February 25, 2026.
Current wording
There have been no material changes to our critical accounting policies and estimates from those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K, as filed with the SEC on February 25, 2026.