Corrected: Alector Q3 swings to net profit on lower operating expenses
CORRECTED-Alector Q3 swings to net profit on lower operating expenses Corrects headline to say it was a swing to net profit, not 'net loss narrows'
Overview
U.S. biotech firm's Q3 revenue surged
Company swung to net profit from loss a year earlier
Alector signed $100 mln upfront licensing deal with Genentech, completed $75 mln equity offering
Outlook
Alector expects current cash and proceeds to fund operations into H2 2029
Company targets first-in-human dosing of AL137 in Australia by April 2027
Alector aims for first-in-human studies of AL164 and AL062 in Q2 2028
Result Drivers
DEFERRED REVENUE RECOGNITION - Q3 revenue increase was mainly due to recognition of remaining deferred revenue from the GSK collaboration after its termination
LOWER OPERATING EXPENSES - General and administrative expenses fell due to workforce reductions, partially offsetting R&D costs
LICENSING DEAL - $100 mln upfront payment from Genentech for AL050 program contributed to cash position and future funding
Company press release: ID:nGNXcgrmhp
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Collaboration Revenue |
| $162.87 mln |
|
Q3 EPS |
| $1.11 |
|
Q3 Net Income |
| $124.60 mln |
|
Q3 Basic EPS |
| $1.11 |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the biotechnology & medical research peer group is "buy."
Wall Street's median 12-month price target for Alector, Inc. is $4.50, about 97.4% above its November 4 closing price of $2.28
Reuters Recommended Reads
Nov 5 - Danish biotech firm Genmab's nine-month revenue up on higher royalties and product sales
Nov 4 - Biopharma firm Xencor's Q3 revenue eases past estimates on Alexion royalty contribution
Nov 5 - China's Qyuns Therapeutics licenses antibody program to Caldera in up to $780 million deal
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)