Investing.com — Alector Inc (NASDAQ:ALEC). announced that its Phase 2 clinical trial of AL002, a treatment for early-stage Alzheimer's disease, did not achieve the primary goal of slowing the disease's progression. Following this outcome, the company's shares plummeted by 32% in after-hours trading.
The biopharmaceutical company stated that it would discontinue the long-term extension study of AL002 as a result of the trial's failure to meet its primary endpoint. In response to these developments, Alector also revealed plans to reduce its workforce by approximately 17%.
The company will now concentrate its efforts on the development of other therapies aimed at neurodegenerative diseases.
As of September 30, Alector reported having $457.2 million in cash, cash equivalents, and investments. The company anticipates that these funds will be sufficient to support its operations through the year 2026.
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