Benzinga | Jul 2, 2021 08:26AM EDT

Alector Shares Jump On $2.2B Immuno-Neurology Development Pact With GSK

* Alector Inc (NASDAQ:ALEC) and GlaxoSmithKline plc (NYSE:GSK) have announced a global collaboration for the development and commercialization of two monoclonal antibodies designed to elevate progranulin (PGRN) levels.

* PGRN is a crucial regulator of immune activity in the brain with genetic links to multiple neurodegenerative disorders.

* Alector will receive $700 million in upfront payments and is eligible to receive up to an additional $1.5 billion in milestone payments.

* Alector will lead the global development of AL001 and AL101 through Phase 2 proof-of-concept.

* After that, Alector and GSK will share development responsibilities for all late-stage clinical studies for AL001 and AL101.

* All costs for global development will be divided between the two companies, and will be jointly responsible for commercialization in the U.S. and will share profits and losses.

* Alector will lead commercial efforts associated with AL001 in orphan indications, and GSK will lead the commercialization of AL101 in Alzheimer's and Parkinson's disease.

* Outside the U.S., GSK will be responsible for the commercialization of AL001 & AL101, and Alector will be eligible for tiered royalties.

* Price Action: ALEC shares are up 39% at $31.15 during the premarket session on the last check Friday.