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Alector Ends Latozinemab After Phase 3 Failure, Slashes Workforce

Failure to convert higher progranulin levels into slowed FTD progression is prompting a shift of resources to other trials.

Overview

  • A 96-week Phase 3 study in FTD caused by GRN mutations showed no clinical benefit on the CDR plus NACC FTLD-SB despite significant increases in plasma progranulin.
  • Alector concluded the pivotal study and will discontinue the open-label extension and continuation studies for latozinemab.
  • The company will cut about 49% of its staff, or roughly 75 employees, and expects a $7.7 million restructuring charge.
  • Shares fell by more than 50% following the announcement, and William Blair downgraded the stock to Market Perform.
  • Alector reported approximately $291.1 million in cash and investments with runway into 2027 and will refocus on other programs, including the GSK-partnered AL101 Phase 2 Alzheimer’s trial with an interim analysis planned in the first half of 2026.