Alector Sells $75M in Stock Eleven Days After Guiding Cash to 2029
Company Background
Alector is a South San Francisco-based biotechnology company developing therapies for neurodegenerative diseases including Alzheimer's and Parkinson's disease. Its pipeline is now entirely preclinical, built around a proprietary blood-brain barrier delivery platform called Alector Brain Carrier (ABC), after a series of late-stage clinical setbacks stripped its partnered programs. A 49% workforce reduction in October 2025, the resignation of President and Head of Research Sara Kenkare-Mitra in December 2025, and the termination by GSK of a major collaboration agreement — effective January 2, 2027 — have remade the company.
Cash has eroded steadily. Alector ended 2024 with $413.4 million, fell to $256.0 million by year-end 2025, and reached $172.8 million at June 30, 2026. Actual cash as of September 30, 2026 was approximately $138.7 million before accounting for a landmark licensing transaction signed the same day. On September 30, 2026, Alector licensed its AL050 GCase program to Genentech for a $100 million upfront payment plus up to $1.17 billion in milestones, which on a pro forma basis lifted the September 30 cash position to approximately $223.7 million.
What Was Disclosed
Alector sold 36,600,000 shares of common stock at $2.05 per share in an underwritten offering, raising $75,030,000 in gross proceeds before underwriting discounts and other expenses. The offering price represented a 7.3% premium to the October 15, 2026 closing price, an unusual structure for a large underwritten deal. Morgan Stanley and BTIG acted as joint book-running managers, and the offering was expected to close on or about October 19, 2026.