Alector, Inc. ( NASDAQ: ALEC ), a biotech focused on neurodegeneration diseases, shed ~18% Wednesday to reach a new 52-week low as Wall Street turned attention to the company's pipeline after its Q3 2022 results.
Alector ( ALEC ) intends to report new data from the Phase 1 trial of AL101 in healthy volunteers later this year and expects a 2023 readout for the INFRONT-2 Phase 2 trial of latozinemab in patients with dementia harboring a certain genetic mutation. The company develops both immuno-neurology candidates in partnership with GSK ( GSK ).
Meanwhile, safety and biomarker data for AL044 from healthy volunteers in a Phase 1 trial are expected in 2023.
In reaction to the updates, Cowen analyst Yaron Werber with an Outperform rating on the stock, wrote that Alector's ( ALEC ) pipeline is "advancing slowly but surely," and argued that the AL101 readout scheduled at a medical event in three weeks from now is "likely incremental."
Meanwhile, William Blair analyst Myles Minter with a similar rating on ALEC, wrote: "Despite neurology carrying significant clinical risk, we see Alector's negative enterprise value as the Street completely undervaluing a pipeline that is under no near-term capital risk."
H.C. Wainwright also defended the stock reiterating the Buy rating and the $41 per share target on the stock to account for AL002, a candidate for early Alzheimer's developed in partnership with AbbVie ( ABBV ).
Enrollments are currently underway for the INVOKE-2 Phase 2 study of AL002 to evaluate its effect in slowing disease progression in patients with early AD.
Read: Seeking Alpha contributor Bret Jensen suggests a covered call strategy to profit from Alector ( ALEC ) but stops short of issuing any recommendation on the stock.
For further details see:
Alector hits 52-week after Q3 results as analysts focus on pipeline