The offering was priced at a 7.3% premium to the prior close ($2.05 vs $1.91), suggesting strong underwriter demand. The proceeds combined with the $100M Genentech upfront provide significant cash runway. Monitor for any clinical data readouts from the AL050 program or the ongoing Phase 2 nivisnebart trial that could impact the stock.
Price Chart
Executive Summary
Alector is offering 36,600,000 shares of common stock at $2.05 per share, expecting net proceeds of approximately $70.2 million. The offering follows a recent license agreement with Genentech for the AL050 program, which included a $100 million upfront payment and up to $1.17 billion in milestones. The capital raise will fund general corporate purposes including R&D and manufacturing.
Key Facts
- Offering 36,600,000 shares of common stock at $2.05 per share
- Expected net proceeds of approximately $70.2 million
- Offering price of $2.05 vs last reported sale price of $1.91 on October 15, 2026
- Total shares outstanding post-offering: 148,256,805 (from 111,656,805)
- Dilution of $1.64 per share to new investors based on net tangible book value
- Net tangible book value as of June 30, 2026 was $(9.97) million, or $(0.09) per share
- Underwriters: Morgan Stanley and BTIG, each purchasing 18,300,000 shares
- Underwriting discount of $0.123 per share, total $4,501,800
- Delivery expected on or about October 19, 2026
- Prospectus dated October 16, 2026
- Recent Genentech license agreement (September 30, 2026) with $100M upfront and up to $1.17B in milestones
Financial Impact
Dilutive equity offering raising approximately $70.2 million net proceeds, representing a 32.8% increase in shares outstanding (36.6M new shares vs 111.7M pre-offering). Immediate dilution of $1.64 per share for new investors.
Risk Factors
- Immediate and substantial dilution of 32.8% to existing shareholders
- Stock trading at $1.91 before offering, below the $2.05 offering price, indicating potential downward pressure
- Pre-revenue biotechnology company with no approved products
- Broad discretion in use of proceeds may lead to inefficient capital allocation
Investment Themes
Documents Analyzed
This report is based on 4 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 424B5 Filing (Primary) | 0001193125-26-424215 |
| Document: 0001193125-26-424215-index-headers.html | 0001193125-26-424215 |
| Document: 0001193125-26-424215-index.html | 0001193125-26-424215 |
| Document: 0001193125-26-424215.txt | 0001193125-26-424215 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | SC 13G | $1.82 | awaiting T+60 | — | $1.95 (+6.87%) |
Oct 23, 2026 3d ago | SC 13G | $1.84 | awaiting T+60 | — | $1.95 (+5.94%) |
Oct 16, 2026 10d ago | 424B5 | $1.95 | awaiting T+60 | — | $1.95 (+0.26%) |
Oct 16, 2026 10d ago | 8-K | $1.95 | awaiting T+60 | — | $1.95 (+0.26%) |
Oct 14, 2026 13d ago | 8-K | $1.88 | awaiting T+60 | — | $1.95 (+3.46%) |
Oct 5, 2026 22d ago | 8-K | $1.99 | awaiting T+60 | — | $1.95 (−2.26%) |
Oct 5, 2026 22d ago | Press Release | $1.99 | awaiting T+60 | — | $1.95 (−2.26%) |
Sep 18, 2026 5w ago | SC 13G | $1.93 | awaiting T+60 | — | $1.95 (+0.78%) |
Sep 4, 2026 7w ago | Insider Cluster | $2.47 | awaiting T+60 | — | $1.95 (−21.26%) |
Aug 15, 2026 10w ago | Institutional Cluster | $2.05 | awaiting T+60 | — | $1.95 (−5.12%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers