Alector (NASDAQ:ALEC) stock is rocketing higher on Friday after the clinical-stage biotechnology company announced a partnership with GlaxoSmithKline (NYSE:GSK).
Here’s everything investors need to know about that collaboration and what it means for ALEC stock.
- The agreement will have the two companies working together to develop the AL001 and AL101 antibodies.
- These antibodies will be used in the treatment of a wide variety of neurodegenerative diseases.
- A few examples worth noting include frontotemporal dementia, amyotrophic lateral sclerosis, Parkinson’s disease, and Alzheimer’s disease.
- This will result in Alector and GlaxoSmithKline sharing profits from the antibodies in the U.S.
- It will also have GlaxoSmithKline holding exclusive commercialization rights to the antibodies outside the U.S.
- Alector is also getting a $700 million upfront payment as part of the collaboration.
- It’s also eligible for an additional $1.5 billion in clinical development, regulatory, and commercial launch-related milestone payments.
- Alector will be handling the development of the antibodies up through the Phase 2 clinical trials.
- Following this, the development will be shared with GlaxoSmithKline for late-stage studies of the antibodies.
- News of the partnership with GlaxoSmithKline has ALEC stock seeing incredibly heavy trading today.
- As of this writing, more than 21 million shares of the stock have changed hands.
- To put that in perspective, the company’s daily average trading volume is only about 582,000 shares.
Arnon Rosenthal, Ph.D., CEO of Alector, said this about the news sending ALEC stock up today.
“Importantly, this collaboration is designed to fully support AL001 and AL101’s development and to enable Alector to continue building a fully integrated company as we strive to address the high unmet medical need in patients suffering from neurodegenerative diseases.”
ALEC stock was up 71.7% as of Friday morning.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.