Alector Inc. (NASDAQ: ALEC), a biotechnology company, has gained more than 100% in one month. This growth has been driven primarily by a promising partnership announced recently and a positive Wall Street recommendation.
In a recent announcement, Alector Inc. (ALEC) announced a partnership with international pharmaceutical company GlaxoSmithKline (NYSE: GSK). The companies will work together to develop two monoclonal antibodies and introduce them to the market. Different types of neurodegenerative diseases can be treated with these promising technologies.
As per the agreement, GlaxoSmithKline will pay Alector more than $700 million in advance payments. A further $1.5 billion can also be expected if certain milestones are met within the two programs.
Investors and Wall Street analysts responded positively to Alector’s partnership with GlaxoSmithKline. In particular, analysts at Citigroup raised the price target for Alector shares from $31 to $43, while recommending that investors buy the shares.
Alector definitely benefits from the partnership. Research and development of an advanced treatment method will be adequately funded through this program.
Alector Inc. (NASDAQ: ALEC) developed neurodegeneration therapies for clinical stage biopharmaceutical companies. One of its products, AL001, is a humanized recombinant monoclonal antibody in clinical trials to cure frontotemporal dementia, Alzheimer’s, Parkinson’s, and amyotrophic lateral sclerosis diseases; and Phase I clinical trials are underway for AL101, an investigational medicine intended to treat neurodegenerative diseases such as Alzheimer’s and Parkinson’s.
ALEC stock share price reached $39.49 on Wednesday in the normal trading session and has a market value of $2.00 billion.