GSK has ended its collaboration with Alector following a series of unsuccessful clinical trials in neurodegenerative diseases, according to a July 9 announcement. The termination, communicated to Alector on July 6, will take effect on Jan. 2, 2027.
Alector disclosed that it has fully repaid and terminated a loan and securities agreement from 2024 with Hercules Capital, which included an initial $10 million tranche. The biotech repaid $10.43 million, including interest.
The partnership began in July 2021 when GSK committed $700 million upfront to advance two antibody therapies for neurodegenerative conditions and offered up to $1.5 billion more in potential research, regulatory, and commercialization milestones. Most of these milestone payments remain unpaid due to the lack of successful outcomes.
The first candidate from the collaboration, latozinemab—a progranulin modulator—failed in October 2025 to significantly slow disease progression in a Phase 3 trial for frontotemporal dementia. While the therapy affected levels of progranulin, it did not meet key secondary endpoints such as MRI measures. This result led both companies to discontinue development of latozinemab and prompted Alector to reduce its workforce by about 49%, laying off around 116 employees.
In April this year, another setback occurred when nivisnebart—the second alliance asset—showed no significant efficacy in a Phase 2 Alzheimer’s disease trial. An independent data board recommended ending the study due to futility, leading both companies to discontinue the program as well.
Alector has faced additional challenges beyond its work with GSK; last November an AbbVie-partnered antibody called AL002 also failed in mid-stage Alzheimer’s testing and resulted in a further workforce reduction by about 17%. As of March 31, Alector reported having $354.6 million in cash and investments expected to support operations into the second half of 2027.
