Alector's Dementia Program Stopped Due to Clinical Setback, Workforce Cutbacks Implemented
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 22 2025
0mins
Should l Buy GSK?
Source: Benzinga
Trial Results: Alector, Inc. announced that its Phase 3 INFRONT-3 trial for latozinemab in treating frontotemporal dementia caused by a progranulin gene mutation did not meet its primary endpoint, although it showed a significant effect on plasma progranulin concentrations.
Workforce Reduction: The company is reducing its workforce by approximately 49% and plans to discontinue the open-label extension of the INFRONT-3 trial due to the trial results.
Pipeline Developments: Alector is continuing its collaboration with GSK on nivisnebart in a Phase 2 trial for early Alzheimer's disease, with trial completion expected in 2026.
Stock Performance: Following the trial results, Alector's stock fell by over 51%, nearing its 52-week low, and analysts have downgraded the company's outlook.
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Analyst Views on GSK
Wall Street analysts forecast GSK stock price to fall
6 Analyst Rating
1 Buy
2 Hold
3 Sell
Moderate Sell
Current: 50.500
Low
20.15
Averages
38.72
High
55.60
Current: 50.500
Low
20.15
Averages
38.72
High
55.60
About GSK
GSK plc is a United Kingdom-based biopharma company. The Company’s segments include Commercial Operations and Research and Development. The Company is focused on the science of the immune system and advanced technologies, investing in four core therapeutic areas-respiratory, immunology and inflammation; oncology; human immunodeficiency virus (HIV), and infectious diseases. Its specialty medicines prevent and treat diseases, from asthma, cancer and HIV to autoimmune diseases like lupus. General medicines include inhalers for asthma and chronic obstructive pulmonary disease (COPD) with antibiotics. Its portfolio also includes Efimosfermin, a fibroblast growth factor 21 (FGF21) analog therapeutic in clinical development. The Company also engaged in ozureprubart, a long-acting anti-immunoglobulin E (IgE) monoclonal antibody. The Company also owns HS235, a potential molecule for the treatment of pulmonary hypertension (PH).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Future Development Options: Halozyme will provide GSK with an option to develop Enhanze-based therapies targeting other drug targets in the future, indicating the potential for long-term collaboration in innovative drug development.
- Financial Terms Undisclosed: While the agreement includes undisclosed upfront payments and royalties on net sales of Enhanze-based products, specific financial terms remain confidential, which may affect market expectations regarding the collaboration.
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- Vaccine Recommendation Policy Shift: Under Secretary of Health and Human Services Robert F. Kennedy Jr., federal health agencies have reduced recommendations for Covid shots, indicating a weakening support for vaccine development research that could impact public trust in vaccinations.
- Withdrawal of Studies Explained: FDA scientists analyzed millions of patient records and found rare side effects of the vaccines; however, they were directed to withdraw two accepted Covid vaccine studies, highlighting the agency's commitment to maintaining the integrity of its scientific process.
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- New Drug Development: The acquired 35Pharma is developing HS235, which aims for improved selectivity that may reduce bleeding risks and other side effects associated with existing pulmonary arterial hypertension treatments; early clinical trials indicate metabolic advantages such as fat-selective weight reduction and enhanced insulin sensitivity, suggesting significant future market potential.
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- Career Background: Szarama joined the FDA in December 2022, previously serving as the deputy director of CBER and having worked at the U.S. Centers for Medicare and Medicaid Services from 2016 to 2019, providing her with a robust foundation for her new role.
- Leadership Transition: Her appointment follows the departure of Vinay Prasad in April 2023, who faced criticism for several controversial decisions during his tenure, highlighting the turbulence within the FDA's leadership.
- Regulatory Challenges: Prasad's tenure included managing the fallout from several deaths linked to the gene therapy Elevidys developed by Sarepta and Bayer, raising significant public and industry scrutiny, suggesting that Szarama's leadership may steer the FDA towards a more cautious regulatory approach.
See More
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- Partnership Impact: The PROGRESS-AD trial was a key component of Alector's collaboration with GSK, and its discontinuation highlights the challenges faced by Alector following last year's Phase 3 trial failure for another form of dementia, raising concerns about the viability of their pipeline.
- Commitment to Future Development: Despite the trial's halt, CEO Arnon Rosenthal emphasized Alector's commitment to advancing its broader pipeline targeting neurodegenerative diseases, including multiple wholly owned candidates enabled by their ABC platform, showcasing confidence in future research endeavors.
- Market Reaction Analysis: Alector's stock price increase following the trial discontinuation reflects investor trust in the company's other research projects, indicating that despite setbacks, the market remains optimistic about its potential in the neuroscience field.
See More
