NASDAQ$ALEC

Alector Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Alector reported financial results for the first quarter ended March 31, 2020.

Alector reported collaboration revenue of $7.2 million and a net loss of $40.0 million for the quarter ended March 31, 2020. The company's cash, cash equivalents, and marketable securities were $548.5 million as of March 31, 2020.

  • Continued execution across immuno-neurology platform.
  • On track to initiate pivotal Phase 3 trial of AL001 in patients with frontotemporal dementia with a progranulin mutation (FTD-GRN) and a Phase 2 study of AL002 in Alzheimer’s disease patients in 2020.
  • Strong cash and investments position of $548.5 million to support execution of clinical, research, and operational goals.
  • Alector entered into a regional licensing agreement with Innovent Biologics for the development and commercialization of AL008 in oncology indications in China.

Headline financials

Total Revenue

$7.17M

Previous: $5.61M+27.9%
EPS (adj)

-$0.53

Previous: -$0.42-26.2%
Capital Expenditures

-$3.57M

Previous: -$2.03M-75.7%
Free Cash Flow

-$43.6M

Previous: -$20.6M-111.7%
Net Income

-$40M

Previous: -$18.6M-115.6%
Operating Income

-$42.1M

Previous: -$20.8M-102.7%
Cash & Equivalents

$549M

No prior period
Total Assets

$619M

No prior period

Revenue & EPS history

Alector · Revenue · Quarterly

$7.17M

Q1 2020+27.9%vs Q1 2019
Beat estimate in 7 of 8 quarters(88%)
ActualEstimate

Revenue by segment

Alector · $7.17M total across 1 segment · Q1 2020

  • Collaboration Revenue
    $7.17M+27.9%

Forward guidance

Alector remains on track with previously stated guidance to initiate a pivotal Phase 3 study of AL001 in FTD-GRN patients in 2020 and also intends to initiate a Phase 2 study of AL002 in Alzheimer’s disease patients in 2020. The Company believes that its cash and investments as of March 31, 2020 will be sufficient to fund its anticipated operations through 2022.

Tailwinds

  • The Company remains on track to advance AL001 into a pivotal Phase 3 study in FTD-GRN patients in 2020.
  • Alector expects to present preliminary Phase 2 data of AL001 in FTD-GRN patients at medical meetings in 2020.
  • Initial Phase 1a data of AL101 in healthy volunteers are also expected during in 2020.
  • Alector has closed enrollment for the Phase 1b study of AL002 and will proceed with initiating a Phase 2 trial in Alzheimer’s disease patients in 2020.
  • Alector plans to initiate Phase 1 development for AL014 within the next 12 months.

Headwinds

  • As the COVID-19 pandemic continues to evolve, it could impact Alector’s programs in the future.
  • Currently, certain clinical trial sites have delayed enrollment of new patients and paused clinical trial visits across clinical development programs.
  • Alector is aware that some participants in ongoing trials have not been able to receive scheduled doses on time due to site closures or various state and local shelter-in-place directives.
  • The number of patients with available data for presentation may be impacted by the COVID-19 pandemic.
  • Alector is actively monitoring the evolving impact of COVID-19 on its operations and clinical trials, with a primary focus on the health and safety of employees, clinical trial participants, and clinical trial site teams.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.1%

Avg return

Earnings day

-1.0%

Avg return

5 days after

-5.5%

Avg return

30 days after

52%

15 / 29 earnings

Positive

+32.9%

Q2 2023

Best reaction

-18.4%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.1%-16.0%-36.6%
Q4 2025+7.1%-11.7%-16.3%
Q3 2025+4.1%+8.4%-2.8%
Q1 2025+4.2%+7.4%+23.8%
Q4 2024-3.5%-15.4%-25.0%
Q3 2024+12.8%+21.3%-56.8%
Q2 2024+0.8%+0.9%-4.2%
Q1 2024-1.9%+1.7%-17.7%
Q4 2023+7.9%+14.4%-7.1%
Q3 2023-2.6%-17.7%+6.0%
Q2 2023+32.9%+12.4%-15.6%
Q1 2023+13.0%+20.6%+8.5%
Q4 2022+0.9%-9.5%-30.3%
Q3 2022-18.4%+3.1%+3.1%
Q2 2022+16.3%+12.7%-6.9%
Q1 2022-12.7%-20.0%-11.9%
Q4 2021+1.9%-1.3%-7.8%
Q3 2021+2.3%+4.1%-20.7%
Q2 2021+9.5%+9.0%+10.1%
Q1 2021-7.8%-12.4%+6.1%
Q4 2020-4.7%-10.7%-14.3%
Q3 2020+0.4%+7.2%+25.2%
Q2 2020-6.9%-7.4%-13.5%
Q1 2020-5.0%+0.3%+3.7%
Q4 2019-1.5%-4.4%+0.8%
Q3 2019-6.1%-4.2%+19.5%
Q2 2019-1.7%-18.0%+9.4%
Q1 2019+4.9%+1.3%+0.2%
Q4 2018-8.6%-3.5%+10.8%
Q3 2018
Q2 2018
Q1 2018
Q4 2017
Q3 2017
Q2 2017
Q1 2017

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