Alector Secures Flexible Credit Facility for Up to $50 Million From Hercules Capital
Alector has secured a flexible credit facility of up to $50 million from Hercules Capital. The company drew an initial $10 million at closing, with $15 million available through June 2026 and an additional $25 million subject to lender approval. The facility carries a low double-digit cost of capital. Alector reported $457.2 million in cash and investments as of September 30, 2024, which, excluding the credit facility, is expected to fund operations through 2026. The company anticipates key data from both the AL002 INVOKE-2 Phase 2 trial and latozinemab INFRONT-3 pivotal Phase 3 trial within this runway.
Alector ha ottenuto una linea di credito flessibile fino a 50 milioni di dollari da Hercules Capital. L'azienda ha prelevato un iniziale 10 milioni di dollari al momento della chiusura, con 15 milioni di dollari disponibili fino a giugno 2026 e ulteriori 25 milioni di dollari soggetti all'approvazione del prestatore. La linea presenta un costo del capitale a due cifre basse. Alector ha riportato 457,2 milioni di dollari in contante e investimenti al 30 settembre 2024, che, escluse le linee di credito, dovrebbero finanziare le operazioni fino al 2026. L'azienda si attende dati chiave sia dalla sperimentazione AL002 INVOKE-2 di fase 2 che dallo studio cruciale di fase 3 latozinemab INFRONT-3 in questo periodo.
Alector ha asegurado una línea de crédito flexible de hasta 50 millones de dólares de Hercules Capital. La compañía retiró 10 millones de dólares inicialmente al cierre, con 15 millones de dólares disponibles hasta junio de 2026 y otros 25 millones de dólares sujetos a la aprobación del prestamista. La línea tiene un costo de capital de dígitos bajos. Alector reportó 457.2 millones de dólares en efectivo e inversiones al 30 de septiembre de 2024, que, excluyendo la línea de crédito, se espera que financie las operaciones hasta 2026. La compañía anticipa datos clave tanto del ensayo AL002 INVOKE-2 de fase 2 como del ensayo crucial de fase 3 de latozinemab INFRONT-3 durante este periodo.
Alector는 Hercules Capital로부터 최대 5천만 달러의 유연한 신용 시설을 확보했습니다. 회사는 마감 시 1천만 달러를 초기 인출하였으며, 1천5백만 달러는 2026년 6월까지 이용 가능하고 추가로 2천5백만 달러는 대출자의 승인이 필요합니다. 이 시설은 낮은 두 자릿수의 자본 비용을 부담합니다. Alector는 2024년 9월 30일 기준으로 4억 5천720만 달러의 현금 및 투자를 보고했으며, 신용 시설을 제외하면 2026년까지 운영 자금을 조달할 것으로 예상됩니다. 회사는 이 기간 동안 AL002 INVOKE-2 2상 시험과 latozinemab INFRONT-3 주요 3상 시험의 핵심 데이터를 전망하고 있습니다.
Alector a sécurisé une facilité de crédit flexible pouvant aller jusqu'à 50 millions de dollars auprès de Hercules Capital. L'entreprise a retiré un montant initial de 10 millions de dollars à la clôture, avec 15 millions de dollars disponibles jusqu'en juin 2026 et un supplément de 25 millions de dollars soumis à l'approbation du prêteur. Cette facilité a un coût du capital à un chiffre bas. Alector a déclaré disposé de 457,2 millions de dollars en liquidités et investissements au 30 septembre 2024, ce qui, en excluant la facilité de crédit, devrait financer ses opérations jusqu'en 2026. L'entreprise anticipe des données clés tant de l'essai AL002 INVOKE-2 de phase 2 que de l'essai pivot de phase 3 sur le latozinemab INFRONT-3 durant cette période.
Alector hat eine flexible Kreditlinie von bis zu 50 Millionen US-Dollar von Hercules Capital gesichert. Das Unternehmen zog zu Beginn 10 Millionen US-Dollar bei Abschluss ab, 15 Millionen US-Dollar sind bis Juni 2026 verfügbar, und zusätzliche 25 Millionen US-Dollar unterliegen der Genehmigung des Kreditgebers. Die Anlage hat niedrige zweistellige Kapitalkosten. Alector berichtete zum 30. September 2024 von 457,2 Millionen US-Dollar in Cash und Investitionen, die, ohne die Kreditlinie, voraussichtlich die Betriebsabläufe bis 2026 finanzieren werden. Das Unternehmen erwartet in diesem Zeitraum wichtige Daten sowohl aus der AL002 INVOKE-2 Phase 2 Studie als auch aus der entscheidenden Phase 3 Studie zu latozinemab INFRONT-3.
- Secured flexible credit facility up to $50 million
- Strong cash position with $457.2 million in cash and investments
- Cash runway extended through 2026
- No obligation to draw additional funds
- Low double-digit cost of capital on the credit facility
Insights
This credit facility significantly strengthens Alector's financial position, providing important operational flexibility with minimal immediate dilution to shareholders. The
The low double-digit cost of capital is reasonable given current market conditions and biotech risk profiles. Importantly, this deal provides a capital buffer without forcing the company to tap equity markets at currently depressed valuations. The structure allows Alector to maintain strong financial optionality while advancing its neurodegenerative disease pipeline through key value-creating events.
SOUTH SAN FRANCISCO, Calif., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Alector, Inc. (Nasdaq: ALEC), a clinical-stage biotechnology company pioneering immuno-neurology, today announced that the Company has entered into a debt financing agreement with Hercules Capital, Inc. (NYSE: HTGC) for up to
“Alector is in a strong cash position with more than
Under the terms of the agreement, Alector drew an initial
“Hercules is pleased to enter into a strategic relationship with Alector as it advances its portfolio of assets aimed at treating neurodegenerative diseases,” said Lake McGuire, Managing Director at Hercules Capital. “This capital commitment from Hercules seeks to help Alector deliver new therapeutic options to patients and further advance their novel and proprietary blood-brain barrier technology.”
Alector’s cash, cash equivalents and investments were
About Alector
Alector is a clinical-stage biotechnology company pioneering immuno-neurology, a novel therapeutic approach for the treatment of neurodegenerative diseases. Immuno-neurology targets immune dysfunction as a root cause of multiple pathologies that are drivers of degenerative brain disorders. Alector has discovered and is developing a broad portfolio of innate immune system programs, designed to functionally repair genetic mutations that cause dysfunction of the brain’s immune system and enable rejuvenated immune cells to counteract emerging brain pathologies. Alector’s immuno-neurology product candidates are supported by biomarkers and seek to treat indications, including Alzheimer’s disease and genetically defined frontotemporal dementia patient populations. Alector is headquartered in South San Francisco, California. For additional information, please visit www.alector.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include, but are not limited to, statements regarding our business plans, business strategy, product candidates, blood-brain barrier technology platform, planned and ongoing preclinical studies and clinical trials, anticipated timing of and detail regarding release of data for INVOKE-2 and INFRONT-3, expected milestones, expectations of our collaborations, expectations of our interactions with regulatory authorities, and financial and cash guidance. Such statements are subject to numerous risks and uncertainties, including but not limited to risks and uncertainties as set forth in Alector’s Quarterly Report on Form 10-Q filed on November 6, 2024, with the Securities and Exchange Commission (“SEC”), as well as the other documents Alector files from time to time with the SEC. These documents contain and identify important factors that could cause the actual results for Alector to differ materially from those contained in Alector’s forward-looking statements. Any forward-looking statements contained in this press release speak only as of the date hereof, and Alector specifically disclaims any obligation to update any forward-looking statement, except as required by law.
Alector Contacts:
Alector
Katie Hogan
202-549-0557
katie.hogan@alector.com
1AB (media)
Dan Budwick
973-271-6085
dan@1abmedia.com
Argot Partners (investors)
Laura Perry
212-600-1902
alector@argotpartners.com
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