What's Happening?
Alector has decided to halt the development of latozinemab, a drug developed in partnership with GSK for treating frontotemporal dementia (FTD), following its failure in a phase 3 trial. The trial, known
as INFRONT-3, did not achieve its goal of slowing dementia progression in patients with FTD caused by a progranulin gene mutation. As a result, Alector is reducing its workforce by 49%, leaving less than 170 employees, and its R&D chief, Sara Kenkare-Mitra, will resign by December 22. The company's stock plummeted by 50% after the announcement, and analysts have downgraded the stock, though they note potential in Alector's preclinical-stage ABC program. This program aims to help large molecules cross the blood-brain barrier, offering potential for future partnerships.
Why It's Important?
The failure of latozinemab represents a significant setback for Alector and GSK, as FTD is a severe and largely inherited form of dementia with limited treatment options. The decision to abandon the drug highlights the challenges in developing effective treatments for neurodegenerative diseases. The workforce reduction and leadership changes at Alector reflect the impact of the trial's failure on the company's strategic direction. However, the focus on the ABC program and other pipeline drugs suggests that Alector is pivoting towards other potential opportunities in the neurodegenerative disease space. The outcome of this trial also underscores the high-risk nature of pharmaceutical development, particularly in the field of dementia.
What's Next?
Alector will now focus on its midstage Alzheimer's program, including the development of nivisnebart, another drug targeting sortilin to increase progranulin levels. This drug is currently in a phase 2 trial for early-stage Alzheimer's, with interim results expected next year. The company also has non-partnered drugs in its pipeline, such as an anti-amyloid antibody for Alzheimer's and a GCase replacement therapy for Parkinson's and Lewy body dementia. Alector's financial position, with $290 million in cash, should support its operations through 2027, allowing it to continue exploring these avenues.
