Alector (ALEC) Morgan Stanley 24th Annual Global Healthcare Conference summary

Macro trends and innovation

• Embracing global innovation, especially from China, as a positive force, with collaboration on research and potential clinical trials in China for neurodegenerative diseases.

• AI is integrated across business functions, improving efficiency and reducing costs, but not yet driving core drug discovery innovation.

• Regulatory focus is on FDA modernization, especially alternatives to animal studies and increased reliance on surrogate biomarkers for clinical approval.

Strategic and operational shifts

• Transitioned from late-stage clinical programs to a preclinical focus, maintaining commitment to neurodegenerative disease but evolving drug targets and modalities.

• The ABC (Alector Brain Carrier) platform, developed over seven years, is now the core value driver, enabling delivery of antibodies, siRNAs, and enzymes to the brain.

• Workforce reduction offset by increased AI adoption and outsourcing, retaining essential R&D and clinical capabilities.

Pipeline and clinical milestones

• Five drugs advancing to clinic, with the lead anti-Abeta antibody (AL137) expected to begin dosing in early 2027; healthy volunteer data anticipated by Q2 2027.

• AL137 targets the pyroglutamate form of Abeta, aiming for monthly subcutaneous dosing, high brain exposure, and reduced hematologic risk.

• Tau siRNA and enzyme replacement therapies for Parkinson’s and Lewy body dementia are also progressing, with strong non-human primate data supporting efficacy and safety.