Alector Halts Alzheimer Trial: Drug Fails to Meet Primary Endpoint

Alector Inc. announced that the Phase 2 clinical trial of AL002, developed for the early-stage treatment of Alzheimer’s disease, did not achieve its primary goal of slowing disease progression. Following this result, the company's shares fell by 32% in after-hours trading.

The biopharmaceutical company stated that due to the trial's failure, it will terminate the long-term extension study for AL002. In response to these developments, Alector also announced plans to reduce its workforce by approximately 17%.

The company will now focus on developing other treatments for neurodegenerative diseases. Alector reported having $457.2 million in cash, cash equivalents, and investments as of September 30. The company anticipates that these funds will be sufficient to support its operations until 2026.