ALEC

Alector is a pre-revenue, clinical-stage neuroscience company, not an operating business you can value on fundamentals. The $21.0M of FY2025 revenue is collaboration income from GSK (the AbbVie deal was terminated in February 2025), it fell 79.1% YoY, and management states plainly it has 'not generated any product or royalty revenue from product sales' and does not expect to until — 'if ever' — a candidate is approved. A 10.8x P/S on disappearing collaboration revenue is meaningless; the only numbers that matter are the pipeline and the cash runway.

The pipeline just took a decisive hit. The MD&A discloses that on October 21, 2025 the company cut 47% of its workforce 'following the results of the Phase 3 INFRONT-3 clinical trial evaluating…latozinemab in FTD-GRN' — a near-halving of headcount immediately after a Phase 3 readout is the language of a trial that missed. That pushes the story back to a GSK-partnered Phase 2 asset (nivisnebart/AL101 in early Alzheimer's) and an otherwise preclinical portfolio (anti-amyloid, GCase ERT, siRNA programs) plus the unproven ABC blood-brain-barrier platform. That is early, binary, and years from any revenue.