Copyright Reuters
Shares of the company fell over 55% in extended trading. Sign up here. The drug, latozinemab, was being tested in people with frontotemporal dementia caused by mutations in the progranulin gene, a condition that leads to an early and severe cognitive decline. Alector said it will stop the open-label extension and continuation studies of latozinemab. The company is reducing its workforce by about 49%, or 75 employees, as part of a restructuring plan, which is expected to cost $7.7 million. Alector said it will now concentrate on other experimental treatments for Alzheimer's and Parkinson's disease, including programs using its proprietary technology to deliver drugs across the blood-brain barrier. The company said it had about $291.1 million in cash and investments at the end of September, enough to fund operations through 2027. Reporting by Kamal Choudhury in Bengaluru; Editing by Maju Samuel
