Alector, Inc. (ALEC)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Alector, Inc. (ALEC) trades at $2.00 with AI Score 11/100 (Grade F). Alector, Inc. is a clinical-stage biopharmaceutical company focused on developing therapies for neurodegenerative diseases. Market cap: $222.61M, Sector: Healthcare.
Price live · AI analysis from May 10, 2026ALEC stock analysis for 2026: Analysts have set a consensus price target of $2.88 for Alector, Inc., suggesting 43.6% upside from the current price of $2.00. The AI MoonshotScore is 11/100, indicating a strong bearish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
ALEC: 3/7 perspectives are bearish. Dominant signal: Ken Griffin bullish.
How is this calculated? →Alector, Inc. (ALEC) Healthcare & Pipeline Overview
Alector, Inc. pioneers immuno-neurology, developing novel therapies targeting the brain's immune system to combat neurodegenerative diseases like Alzheimer's and Parkinson's. Their clinical-stage pipeline, featuring monoclonal antibodies and strategic collaborations with companies like GlaxoSmithKline, positions them in the competitive biotechnology landscape.
What Is the Investment Thesis for ALEC?
Alector's investment thesis hinges on the potential of its immuno-neurology approach to address significant unmet needs in neurodegenerative diseases. The company's lead asset, AL001, in Phase III trials, represents a near-term value driver. Positive clinical trial results for AL001 could lead to regulatory approval and subsequent commercialization, driving revenue growth. The collaboration with GlaxoSmithKline provides financial resources and expertise to support development and commercialization efforts. However, the company's negative profit margin of -680.8% and negative free cash flow of $-0.12 billion highlight the risks associated with clinical-stage biopharmaceutical companies, including the potential for clinical trial failures and regulatory setbacks. Successful development and commercialization of its pipeline assets are crucial for Alector to achieve profitability and generate long-term shareholder value.
Based on FMP financials and quantitative analysis
ALEC Key Highlights
- Market capitalization of $222.61M reflects investor sentiment regarding the company's pipeline and potential.
- Gross margin of 76.4% indicates strong potential profitability upon successful commercialization of its products.
- Phase III clinical trial for AL001 represents a significant milestone and potential near-term catalyst.
- Collaboration with GlaxoSmithKline provides financial resources and validation of Alector's technology.
- Negative P/E ratio of -2.92 reflects the company's current lack of profitability due to ongoing research and development expenses.
Who Are ALEC's Competitors?
ALEC is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| LLY Eli Lilly and Company | $1202.56 | -0.94% | $1.13T | 98 |
| BIIB Biogen Inc. | $212.58 | -1.64% | $31.39B | 78 |
| VRTX Vertex Pharmaceuticals Incorporated | $529.59 | +0.29% | 135B | 99 |
| SNDX Syndax Pharmaceuticals, Inc. | $22.11 | +1.33% | $1.96B | 79 |
| ANAB AnaptysBio, Inc. | $63.69 | +0.43% | $2.75B | 79 |
| CGEN Compugen Ltd. | $2.37 | +3.73% | $223.62M | 76 |
| XFOR X4 Pharmaceuticals, Inc. | $4.09 | -0.86% | $386.20M | 76 |
| DAWN Day One Biopharmaceuticals, Inc. | $21.53 | +0.00% | $2.22B | 68 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are ALEC's Key Strengths?
- Novel immuno-neurology approach.
- Advanced clinical-stage pipeline.
- Strategic collaboration with GlaxoSmithKline.
- Experienced management team.
What Are ALEC's Weaknesses?
- High cash burn rate.
- Reliance on clinical trial success.
- Limited commercial infrastructure.
- Negative profitability.
What Could Drive ALEC Stock Higher?
- Phase III clinical trial results for AL001 in frontotemporal dementia (FTD).
- Initiation of Phase II clinical trials for AL002 in Alzheimer's disease.
- Advancement of AL101 through Phase I clinical trials.
- Expansion of AL001's clinical development into other neurodegenerative diseases.
What Are the Key Risks for ALEC?
- Financial-distress signal — its Altman Z-Score of -5.98 sits in the distress zone (elevated bankruptcy risk).
- Weak fundamentals — a Piotroski F-Score of 3/9 flags soft profitability, leverage or efficiency.
- Clinical trial failures for AL001 or other pipeline assets.
- Regulatory setbacks in obtaining approval for their therapies.
- Competition from other pharmaceutical companies developing therapies for neurodegenerative diseases.
- High cash burn rate and need for additional financing.
- Patent challenges from competitors.
What Are the Growth Opportunities for ALEC?
- Successful completion of the Phase III clinical trial for AL001 in frontotemporal dementia (FTD) represents a significant growth opportunity. The FTD market is underserved, and positive trial results could lead to regulatory approval and commercialization, generating substantial revenue. The global FTD market is projected to reach billions of dollars in the coming years, offering a significant commercial opportunity for Alector.
- Expansion of AL001's clinical development into other neurodegenerative diseases, such as Alzheimer's and Parkinson's, could broaden its market potential. Positive data in these indications could lead to additional regulatory approvals and revenue streams. The Alzheimer's and Parkinson's disease markets are significantly larger than the FTD market, offering substantial growth potential for Alector.
- Advancement of other pipeline assets, such as AL101, AL002, AL003, and AL044, through clinical development could create additional value. Each of these assets targets different mechanisms or pathways involved in neurodegeneration, providing multiple shots on goal. Successful development of these assets could diversify Alector's revenue streams and reduce its reliance on AL001.
- Strategic collaborations and partnerships with other pharmaceutical companies could provide additional funding and expertise to support Alector's growth. The collaboration with GlaxoSmithKline is a prime example of this strategy. Additional partnerships could accelerate the development and commercialization of Alector's pipeline assets and expand its reach into new markets.
- Expansion into new therapeutic areas within immuno-neurology could provide long-term growth opportunities. Alector's expertise in targeting the brain's immune system could be applied to other neurological disorders beyond neurodegenerative diseases. This could involve developing new therapies for conditions such as multiple sclerosis, stroke, or traumatic brain injury.
What Opportunities Does ALEC Have?
- Expansion into new neurodegenerative disease indications.
- Development of new immuno-neurology therapies.
- Strategic partnerships and acquisitions.
- Growing market for neurodegenerative disease therapies.
What Threats Does ALEC Face?
- Clinical trial failures.
- Regulatory setbacks.
- Competition from other pharmaceutical companies.
- Patent challenges.
What Are ALEC's Competitive Advantages?
- Proprietary immuno-neurology platform.
- Strong intellectual property portfolio protecting their therapies and technologies.
- Strategic collaborations with leading pharmaceutical companies.
- Experienced management team with expertise in drug development and commercialization.
What Does ALEC Do?
Founded in 2013 and headquartered in South San Francisco, California, Alector, Inc. is a clinical-stage biopharmaceutical company dedicated to developing therapies for neurodegenerative diseases. The company's approach centers on immuno-neurology, targeting the brain's immune system to combat diseases like Alzheimer's, Parkinson's, frontotemporal dementia (FTD), and amyotrophic lateral sclerosis (ALS). Alector's lead product candidate, AL001, a humanized recombinant monoclonal antibody, is currently in Phase III clinical trials for FTD and is also being explored for Alzheimer's, Parkinson's, and ALS. AL101 is in Phase I clinical trials for neurodegenerative diseases, including Alzheimer's and Parkinson's. Other pipeline assets include AL002, in Phase II for Alzheimer's disease, AL003, in Phase I for Alzheimer's disease, and AL044, targeting MS4A4A, a risk gene for Alzheimer's disease. Alector collaborates with Adimab, LLC for antibody research and development, and has a strategic collaboration with GlaxoSmithKline plc for the development and commercialization of monoclonal antibodies, including AL001 and AL101. This partnership aims to accelerate the development and commercialization of these potential treatments for neurodegenerative conditions.
What Products and Services Does ALEC Offer?
- Develop therapies for neurodegenerative diseases.
- Focus on immuno-neurology, targeting the brain's immune system.
- Develop humanized recombinant monoclonal antibodies.
- Conduct clinical trials to evaluate the safety and efficacy of their therapies.
- Collaborate with other companies for research and development.
- Seek regulatory approval for their therapies from health authorities.
How Does ALEC Make Money?
- Develop and commercialize therapies for neurodegenerative diseases.
- Generate revenue through sales of approved therapies.
- Collaborate with pharmaceutical companies for development and commercialization, receiving upfront payments, milestone payments, and royalties.
- Out-license their technologies to other companies.
What Industry Does ALEC Operate In?
Alector operates within the biotechnology industry, which is characterized by high risk and high reward. The market for neurodegenerative disease therapies is substantial and growing, driven by an aging population and increasing prevalence of conditions like Alzheimer's and Parkinson's. Competition is intense, with numerous companies pursuing different approaches to treat these diseases. Alector's immuno-neurology approach differentiates it from competitors focusing on other mechanisms, such as amyloid plaques or tau tangles. The success of Alector depends on its ability to navigate the complex regulatory landscape, secure funding, and demonstrate clinical efficacy in its trials.
Who Are ALEC's Key Customers?
- Patients suffering from neurodegenerative diseases, such as Alzheimer's, Parkinson's, and frontotemporal dementia.
- Healthcare providers who prescribe and administer Alector's therapies.
- Pharmaceutical companies who collaborate with Alector on development and commercialization.
Alector, Inc. (ALEC) Valuation Context
Valued at $222.61M, ALEC is classified as a micro-cap stock. Relative to its peer group, ALEC's quantitative score of 11/100 is below the peer average of 87/100.
ALEC Revenue & Earnings Trend
In Q1 2026, ALEC generated $1.0M in top-line revenue, marking a sequential decrease of 83.2%. The company recorded a net loss of $22.9M, with diluted EPS of $-0.21. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Healthcare. Across the four most recent quarters, ALEC averaged $-0.30 in diluted EPS.
Company Profile
Alector, Inc. operates in the Biotechnology industry within the Healthcare sector. It is headquartered in South San Francisco, US. The company is led by CEO Arnon Rosenthal. ALEC has traded publicly since 2019.
Key Financial Metrics
Return on assets is -52.3%, showing how much profit it generates from its asset base. Its free cash flow yield is -72.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 5.25 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -52.5%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 3/9Financial Health
Alector, Inc.'s Piotroski F-Score is 3/9, a 9-point checklist of profitability, leverage and efficiency — flagging fundamental weakness worth scrutiny. Its Altman Z-Score of -5.98 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Alector, Inc. revenue of about $6.0M for fiscal 2026, with EPS near $-0.88. The estimate reflects 6 contributing analysts.
ALEC Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in Alector's future, indicating that executives believe in the company's potential.
- Community sentiment has shown a growing interest in Alector's innovative therapies for neurodegenerative diseases, reflecting optimism about their pipeline.
- Positive discussions around potential partnerships have emerged, with analysts speculating that collaborations could enhance Alector's research capabilities.
- The company's recent presentations at biotech conferences have generated buzz, highlighting their advancements and attracting attention from investors.
Bear Case
- Concerns about the competitive landscape in the biotech sector have surfaced, with analysts noting that Alector faces significant challenges from larger firms.
- Recent social sentiment reflects skepticism regarding the timeline for Alector's drug approvals, with some investors doubting near-term catalysts.
- There have been mixed reviews from the community on Alector's latest clinical trial results, leading to uncertainty about the efficacy of their treatments.
- Market perception remains cautious, as broader economic factors may impact funding and investment in biotech, affecting Alector's growth prospects.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · February 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1M | -$23M | -$0.21 |
| Q4 2025 | $6M | -$37M | -$0.34 |
| Q3 2025 | $3M | -$35M | -$0.34 |
| Q2 2025 | $8M | -$31M | -$0.30 |
Based on FMP financials and quantitative analysis
ALEC Latest News
No recent news available for ALEC.
ALEC Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for ALEC.
Price Targets
Consensus target: $2.88
ALEC MoonshotScore
What does this score mean?
The MoonshotScore rates ALEC's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Arnon Rosenthal
CEO
Arnon Rosenthal is the CEO of Alector, Inc. He has extensive experience in the biotechnology industry, with a focus on drug discovery and development. Prior to Alector, he held leadership positions at Genentech and Sunesis Pharmaceuticals. He has a Ph.D. in Biochemistry from the Weizmann Institute of Science and has published numerous scientific articles in peer-reviewed journals. He has a proven track record of building and leading successful biotechnology companies.
Track Record: Under Arnon Rosenthal's leadership, Alector has advanced multiple programs into clinical development and secured strategic collaborations with major pharmaceutical companies, including GlaxoSmithKline. He has overseen the company's growth from a small startup to a clinical-stage biopharmaceutical company with a promising pipeline of immuno-neurology therapies. He has also successfully raised significant capital to fund the company's research and development efforts.
Alector, Inc. Healthcare Stock: Key Questions Answered
What does Alector, Inc. do?
Alector, Inc. is a clinical-stage biopharmaceutical company pioneering immuno-neurology, a novel approach to treating neurodegenerative diseases. They are developing therapies that harness the power of the brain's immune system to combat diseases like Alzheimer's, Parkinson's, frontotemporal dementia, and amyotrophic lateral sclerosis. Their lead product candidate, AL001, is in Phase III clinical trials for frontotemporal dementia and is also being explored for other neurodegenerative diseases. Alector collaborates with companies like GlaxoSmithKline to accelerate the development and commercialization of its therapies.
What do analysts say about ALEC stock?
Analyst coverage of Alector (ALEC) is mixed, reflecting the inherent risks and potential rewards of clinical-stage biotechnology companies. Some analysts highlight the potential of Alector's immuno-neurology approach and its promising pipeline of therapies. Others express concerns about the company's high cash burn rate and reliance on clinical trial success. Valuation metrics vary depending on the analyst's assumptions about the probability of success for Alector's pipeline assets. Overall, the consensus view is that Alector is a high-risk, high-reward investment opportunity.
What are the main risks for ALEC?
Alector faces several key risks, including the potential for clinical trial failures, regulatory setbacks, and competition from other pharmaceutical companies. Clinical trial failures could significantly impact the company's valuation and future prospects. Regulatory setbacks in obtaining approval for their therapies could delay or prevent commercialization. Competition from other companies developing therapies for neurodegenerative diseases could erode Alector's market share. The company also faces the risk of high cash burn rate and the need for additional financing, which could dilute existing shareholders.
What are the key factors to evaluate for ALEC?
Alector, Inc. (ALEC) holds an AI score of 11/100 (low). Analysts target $2.88 (+44%). Not financial advice.
How frequently does ALEC data refresh on this page?
ALEC prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven ALEC's recent stock price performance?
Alector, Inc. (ALEC) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Novel immuno-neurology approach. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider ALEC overvalued or undervalued right now?
Valuing Alector, Inc. (ALEC) requires multiple metrics. Analysts target $2.88 (+44%) — upside seen. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying ALEC?
Before investing in Alector, Inc. (ALEC), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on publicly available sources and may be subject to change.
- Investment in biotechnology companies is inherently risky and may result in loss of capital.