Alector, Inc. reported its fourth‑quarter and full‑year 2025 financial results, posting a net loss of $142.9 million, or $1.39 per share, for the year. The loss widened from $119.0 million, or $1.23 per share, in 2024, reflecting a continued need for investment in its neurodegenerative pipeline despite cost‑control measures that reduced research and development expenses to $123.1 million from $185.9 million and general and administrative costs to $54.0 million from $59.6 million.
Collaboration revenue fell sharply to $21.0 million in 2025, down from $100.6 million in 2024, as the company completed performance obligations for its AL002 and latozinemab programs. In the fourth quarter alone, revenue dropped to $6.2 million from $54.2 million in the same period a year earlier, underscoring the volatility of milestone‑driven income. The company’s cash, cash equivalents, and investments totaled $256.0 million as of December 31, 2025, providing a runway through 2027.
The fourth‑quarter results were more favorable than analysts had expected. Earnings per share of $-0.34 beat the consensus estimate of $-0.39, a $0.05 improvement, while revenue of $6.2 million surpassed the $3.07 million estimate, a $3.13 million beat. The earnings beat was largely driven by disciplined cost management that offset the revenue decline, while the revenue surprise reflected a stronger-than‑anticipated mix of milestone payments in the quarter.
Management highlighted the strategic importance of its Alector Brain Carrier (ABC) platform, stating: "Alector's strength lies in the combination of a highly differentiated blood‑brain barrier platform and a team with deep experience executing complex neurodegenerative programs. Following more than six years of focused investment in our ABC technology, we believe the breadth, flexibility, and tunability of our ABC platform position us to translate scientific innovation into exciting clinical‑stage assets. At the same time, we continue to advance the PROGRESS‑AD Phase 2 trial of nivisnebart (AL101) in early Alzheimer's disease, together with GSK, toward an independent interim futility analysis in the first half of 2026."
Investor sentiment was positive, with analysts noting that the earnings and revenue beats provided a boost to confidence in Alector’s pipeline progress, even as the sharp decline in collaboration revenue highlighted a vulnerability in the company’s revenue model. The company’s extended cash runway and ongoing investment in its neurodegenerative programs are viewed as key factors that may support future growth.
The results underscore a mixed outlook: while cost controls and a strong pipeline continue to support earnings, the significant drop in collaboration revenue signals a need for new milestone agreements to sustain revenue growth. The company’s focus on advancing its ABC platform and early‑stage trials remains central to its long‑term strategy.
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