Alector prices $75,030,000 stock offering at $2.05, above prior close

Alector, Inc. (Nasdaq: ALEC) priced an underwritten offering of 36,600,000 shares of common stock at $2.05 a share on October 16, 2026. Gross proceeds are expected to be $75,030,000 before underwriting discounts, commissions and other expenses. All of the shares are sold by Alector. The price is a premium of approximately 7.3% over the October 15, 2026 close, and the prospectus supplement gives that day's last reported sale price on the Nasdaq Global Select Market as $1.91 a share.

Terms, banks and counsel

Underwriting discounts and commissions are $0.123 a share, or $4,501,800 in total. That leaves proceeds before expenses of $70,528,200, or $1.927 a share, and Alector estimates net proceeds of approximately $70.2 million. Morgan Stanley & Co. LLC and BTIG, LLC are the representatives and joint lead book-running managers, and each takes 18,300,000 of the shares. The release names TCGX, BVF Partners, ADAR1 Capital Management and Deep Track Capital among the new and existing investors, and adds "among others." Wilson Sonsini Goodrich & Rosati, Professional Corporation is counsel to Alector, and Davis Polk & Wardwell LLP is counsel to the underwriters. Delivery is expected on or about October 19, 2026, and the company and its directors and executive officers agreed not to sell similar securities for 30 days without the underwriters' consent. Offering expenses, excluding underwriting discounts and commissions, are approximately $0.3 million.

Dilution and use of proceeds

Alector had 111,656,805 shares outstanding on June 30, 2026 and will have 148,256,805 after the offering. Its net tangible book value at that date was approximately $(9.97) million, or $(0.09) per share, and the prospectus tells new buyers they face immediate dilution of $1.64 per share. The count excludes 10,043,385 shares issuable on options at a weighted-average exercise price of $11.38, and 3,372,241 options granted after June 30 at $1.88.

The company says it will use the proceeds for general corporate purposes, which may include research, development and manufacturing of product candidates, working capital, capital expenditures and acquisitions or strategic transactions. It names no specific program for the money.

The business

Alector is a South San Francisco biotechnology company developing therapies for neurodegenerative diseases. Its proprietary Alector Brain Carrier, or ABC, platform is a blood-brain barrier delivery technology that binds a distinct region of the transferrin receptor, with the stated aim of reaching the brain at lower doses. The release says the platform is being applied to its preclinical and research pipeline, and the prospectus says its next-generation pipeline is "distinct from our prior clinical programs." The company says its candidates target indications such as Alzheimer's disease and Parkinson's disease. The offering documents give no clinical results for those candidates. Alector was formed as Alector LLC in Delaware in May 2013 and restructured as Alector, Inc. in October 2017.

Revenue, losses and cash

The 10-K filed on February 25, 2026 shows revenue of $21.0 million for 2025, down from $100.6 million for 2024. Research and development expense fell to $123.1 million from $185.9 million, but the net loss rose to $142.9 million from $119.0 million. Cash used in operations was $184.0 million in 2025, against $229.9 million in 2024.

Cash and short-term investments have fallen. At December 31, 2024, cash and cash equivalents were $33.0 million and short-term investments $380.4 million. At December 31, 2025 they were $65.8 million and $190.2 million. At June 30, 2026, cash and cash equivalents were $59.9 million and short-term investments were $112.9 million. The $75,030,000 gross proceeds compare with $184.0 million of cash used in operations in 2025.

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