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Alector downgraded to Underperform at BofA after Alzheimer’s trial miss
The Fly

Alector downgraded to Underperform at BofA after Alzheimer’s trial miss

As previously reported, BofA downgraded Alector (ALEC) to Underperform from Neutral with a price target of $1, down from $9, after ALOO2 missed the mark in its Phase 2 Alzheimer’s trial. The firm sees this as likely the end for the AL002 program, does not expect the $250M opt-in milestone from AbbVie (ABBV) to be realized, and removed AL002 from its model, the analyst tells investors. The firm also decreased its estimate of the value of AL001 and sees “significant investment” needed to spur the next leg of pipeline growth.

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