Alector soars as Roche licenses Parkinson's therapy for up to $1.27 billion
ALEC•Roche will pay Alector $100 million upfront and up to $1.17 billion in milestone payments to license its experimental Parkinson's treatment, with Alector also eligible for royalties. Alector shares surged 72% in premarket trading.
1. Deal terms
Genentech, a unit of Roche, will receive exclusive worldwide rights to develop, make and sell Alector's experimental treatment AL050. Alector will receive $100 million upfront and may receive up to $1.17 billion more if the treatment reaches development, regulatory and sales targets, as well as royalties.
2. Treatment details
AL050 is an enzyme replacement therapy designed to address a deficiency of the GCase enzyme, which leads to a buildup of certain fats and a higher risk of Parkinson's disease. Genentech will handle development, regulatory submissions, manufacturing and commercialization.
3. Roche licensing activity
The deal is the latest in a series of licensing agreements by Roche as it works to expand its drug pipeline. In June, Roche agreed to a licensing and collaboration deal with Nurix Therapeutics worth up to $2.3 billion for a blood cancer drug.
