Alector Stock Plummets 63% in a Month: Here's What You Need to Know

Shares of Alector ALEC have plunged 62.5% in the past month. The massive decline in the stock price was primarily due to the failure of a late-stage study evaluating its investigational candidate, latozinemab (AL001), in patients with frontotemporal dementia due to a progranulin gene mutation (FTD-GRN).

ALEC’s Phase III Dementia Study Data in Detail

Alector reported that the 96-week phase III INFRONT-3 study of latozinemab, developed in collaboration with GSK plc GSK, failed to achieve its clinical co-primary endpoint of slowing disease progression in symptomatic and at-risk FTD-GRN patients, as measured by the CDR plus NACC FTLD-SB scale, a popular metric for dementia assessment. However, the therapy delivered a statistically significant effect on the biomarker co-primary endpoint of plasma progranulin (PGRN) concentrations.

Alector also reported that no treatment-related improvements on FTD-GRN were observed across the study’s secondary and exploratory endpoints, including fluid biomarkers and volumetric magnetic resonance imaging.

Year to date, ALEC shares have lost 34.4% against the industry’s 14.8% growth.

Based on the disappointing data readout, Alector has decided to discontinue the open-label extension portion of the phase III INFRONT-3 study as well as a continuation study for latozinemab. Additionally, the company is cutting its workforce by about 49% to concentrate resources on its top-priority programs and maintain progress across its core pipeline.

ALEC Shifts Focus to Other Pipeline Programs

Following the massive pipeline setback, Alector has shifted focus to its only remaining clinical pipeline candidate, nivisnebart (AL101/GSK4527226). The candidate, also being developed in collaboration with GSK, is currently being evaluated in a phase II PROGRESS-AD study for patients with early-stage Alzheimer’s disease.

Nivisnebart is an investigational human monoclonal antibody with a unique mechanism of action to elevate PGRN concentrations in the brain. It differs from latozinemab, offering distinct pharmacokinetic and pharmacodynamic characteristics that could make it a strong candidate for treating more common neurodegenerative diseases.

Alector has already completed enrollment in the PROGRESS-AD study and expects study completion in 2026. An independent interim analysis is scheduled for the first half of 2026.

Besides nivisnebart, ALEC’s wholly owned pipeline comprises several other pre-clinical candidates being developed for a range of neurodegenerative diseases.

Alector and GSK originally signed the global collaboration agreement in 2021 to develop and commercialize progranulin-elevating monoclonal antibodies, including latozinemab and nivisnebart. Per the terms of the agreement, ALEC and GSK will split commercialization profits and losses evenly in the United States. Outside the United States, Alector is eligible to receive double-digit tiered royalties from GSK on sales.

Alector, Inc. Price and Consensus

Alector, Inc. price-consensus-chart | Alector, Inc. Quote

ALEC’s Zacks Rank and Stocks to Consider

Alector currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector include Arcutis Biotherapeutics ARQT and ADMA Biologics ADMA, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the past 60 days, estimates for Arcutis Biotherapeutics’ loss per share have narrowed from 44 cents to 24 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 9 cents to 41 cents. Year to date, shares of ARQT have rallied 87.8%.

Arcutis Biotherapeutics’ earnings beat estimates in each of the trailing four quarters, the average surprise being 64.80%.

In the past 60 days, estimates for ADMA Biologics’ earnings per share have increased from 57 cents to 58 cents for 2025. During the same time, earnings per share estimates for 2026 have improved from 88 cents to 90 cents. Year to date, shares of ADMA have lost 10.1%.

ADMA Biologics’ earnings beat estimates in one of the trailing four quarters, matched once and missed the same on the remaining two occasions, with the average negative surprise being 3.01%.

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This article originally published on Zacks Investment Research (zacks.com).

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