Alector — Third Quarter 2026 Earnings Summary

Financial Performance:

• Collaboration revenue for the quarter ended September 30, 2026, was $162.9 million, compared to $3.3 million in the same period in 2025.
• Total research and development expenses were $30.0 million for the quarter, compared to $29.4 million in 2025.
• General and administrative expenses were $9.0 million for the quarter, a decrease from $11.5 million in 2025.
• Net income for the quarter ended September 30, 2026, was $124.6 million ($1.11 per share), compared to a net loss of $34.7 million ($0.34 per share) in 2025.
• Cash, cash equivalents, and investments totaled $138.7 million as of September 30, 2026, down from $256.0 million as of December 31, 2025.
• Deferred revenue decreased to $0 as of September 30, 2026, from $171.2 million as of December 31, 2025.
• Total stockholders' equity increased to $116.6 million as of September 30, 2026, from $30.6 million as of December 31, 2025.

Guidance and Future Outlook:

• Management expects cash, cash equivalents, and investments, combined with the $100 million Genentech upfront payment and net proceeds from the October 2026 offering, to fund operations into the second half of 2029.
• AL137 targets first-in-human dosing in Australia no later than April 2027, with a U.S. IND submission targeted for Q2 2027.
• AL164 and AL062 target first-in-human studies in Q2 2028.

Business Segments and Product Lines:

• The company's pipeline is built entirely on the Alector Brain Carrier (ABC) platform, covering antibody, enzyme, and siRNA programs.
• AL137 (ABC-enabled anti-amyloid beta antibody for Alzheimer's disease) completed IND-enabling studies in non-human primates and submitted HREC registration in Australia in October 2026.
• AL164 (ABC-enabled Tau siRNA) demonstrated up to 76% reduction in tau mRNA and durable reduction of phospho-Tau 217 in non-human primates with no adverse findings at doses up to 30 mg/kg.
• AL062 (ABC-enabled alpha-synuclein siRNA for Parkinson's disease) reduced SNCA gene expression by up to 94% in non-human primates with no adverse findings.
• AL050 (brain-penetrant GCase enzyme replacement therapy) was licensed exclusively to Genentech for global development and commercialization.
• Earlier-stage programs include ADP065, an NLRP3 siRNA for multiple neurodegenerative conditions.

Market and Competitive Landscape:

• The ABC platform is designed to address blood-brain barrier delivery challenges, offering tailored binding affinities and kinetics for various therapeutic modalities while preserving immune system recruitment capabilities.
• The platform enables peripheral dosing for siRNA programs, offering potential advantages in convenience and scalability over traditional intrathecal delivery.

Risks and Challenges:

• The press release includes standard forward-looking statement disclaimers noting risks and uncertainties, including those detailed in the company's Form 10-K and Form 10-Q filings, which could cause actual results to differ materially from expectations.

Management Commentary and Tone:

• CEO Arnon Rosenthal, Ph.D., stated the company has exclusively licensed AL050 to Genentech, strengthened its balance sheet, and moved wholly owned programs closer to the clinic.
• Management emphasized the ABC platform's design to deliver sufficient drug to the brain, addressing a central challenge in treating neurodegenerative disease.

Other Key Points:

• Alector entered an exclusive global license agreement with Genentech for AL050, receiving a $100 million upfront payment and becoming eligible for up to $1.17 billion in milestone payments plus tiered royalties.
• On October 16, 2026, Alector completed an underwritten offering of 36,600,000 shares at $2.05 per share, generating approximately $75.0 million in gross proceeds, priced at a 7.3% premium to the closing price.
• The increase in collaboration revenue was primarily attributable to the recognition of remaining deferred revenue under the GSK agreement following the termination of that agreement in July 2026.
• R&D expense increases were driven by option and license fees under the Spur Agreement, partially offset by cost reductions from the wind-down of latozinemab and nivisnebart programs and a reduction in force.
• G&A expense decreases were driven by lower personnel-related costs resulting from the reduction in force.