Alector (ALEC) Investor update summary

Global licensing agreement

• Genentech received exclusive worldwide rights to develop and commercialize AL050, a brain-penetrant GCase enzyme replacement therapy for Parkinson’s disease and other neurodegenerative diseases.

• Terms include $100 million upfront, up to $1.17 billion in development, regulatory and commercial milestones, and tiered net-sales royalties; amounts are before payments due to Spur.

• Genentech will lead development, regulatory, manufacturing and commercialization; ABC platform ownership and use across the wholly owned pipeline remain in-house.

Strategic direction and partnership

• Strategy shifted from brain immune-cell checkpoint therapies toward ABC-enabled bispecific antibodies, enzymes and nucleic acid medicines aimed at more validated targets.

• AL050 pairs engineered GCase, designed for greater activity and longer half-life, with the ABC shuttle; the partnership validates the brain-delivery platform.

• The license extends cash runway into 2029, supporting wholly owned pipeline development and multiple potential value inflection points through 2028.

• siRNA is expected to be a near-term focus; modality will be selected according to target biology, with internal development and continued openness to partnerships.

AL137 anti-amyloid program

• AL137 combines a pyroglutamate-3 Aβ epitope, full IgG1 effector function and a transferrin-receptor brain shuttle; preclinical work showed plaque binding and microglial phagocytosis comparable to validated antibodies.

• NHP dosing showed 32x higher frontal-cortex and 29x higher hippocampus concentrations than a non-ABC antibody; modeling projected ~2x brain exposure versus gantenerumab at half the dose.

• The masked transferrin-receptor epitope is designed to limit immune-cell co-binding and anemia; studies found transient reticulocyte reductions that recovered without adverse hematologic findings.

• Healthy-volunteer Phase I is targeted for Q2 2027, with Australia HREC submission in Q4 2026 and a U.S. IND in Q2 2027; early-AD patient studies and imaging, biomarker and safety readouts are planned through 2028.

• Development aims include >90% plaque clearance within 3–6 months; management cited >70% as a threshold associated with clinical benefit. Early-AD enrollment will use amyloid PET and MMSE, not tau level.