Alector soars as Roche licenses Parkinson's therapy for up to $1.27 billion

By Reuters News

- Swiss drugmaker Roche ROPC.S will pay up to $1.27 billion to license Alector's ALEC.O experimental treatment for Parkinson's disease, the US biotech said on Monday, sending its shares surging 72% in premarket trading.

Genentech, a unit of Roche, will pay Alector $100 million upfront and up to $1.17 billion more if the treatment reaches development, regulatory and sales targets. Alector is also eligible for royalties.


Here are some details:

  • The agreement grants Genentech exclusive worldwide rights to develop, make and sell AL050, an experimental treatment designed to address a lack of an enzyme linked to Parkinson's disease

  • Genentech will be responsible for development, regulatory submissions, manufacturing and commercialization of the treatment

  • AL050 is an enzyme replacement therapy designed to address the deficiency of the GCase enzyme that leads to the buildup of certain fats and a higher risk of Parkinson's disease

  • 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 a licensing and collaboration deal with Nurix Therapeutics NRIX.O worth up to $2.3 billion for a blood cancer drug

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