Alector, a biotech startup that is developing a drug aimed at fighting Alzheimer’s disease, has received funding from pharmaceutical giant AbbVie Inc (NYSE:ABBV). The startup will get an upfront payment of $205 million as well as a potential equity injection amounting to $20 million from the drug giant.
It is estimated that the number of people in the United States suffering from Alzheimer’s disease will triple by the year 2050 to reach a figure of 16 million. Several companies which have set out to develop treatments for the disease have however not met with success so far. In September Axovant Sciences announced that late-phase clinical trial aimed at treating patients suffering from Alzheimer’s disease had failed.
Immune system
Alector’s approach to treating the disease is somewhat different as it targets the reactivation of the immune system of the patients in the same way that recent discoveries in cancer drug research have recommended.
“We anticipate that immuno-neurology therapies will have as much of an impact on brain disorders as immuno-oncology is having on cancer,” said the chief executive officer of Alecto, Arnon Rosenthal.
In the case of cancer, biotech firms are developing immunotherapy treatments which are aimed at particular proteins in order to reactivate the body’s immune system and consequently attach the tumor cells.
Brain cells
According to Rosenthal, the therapy that the startup is developing aims to stimulate, multiply, move and direct brain cells known as microglia, which comprise approximately 15% of all cells in the brain. By so doing the drug Alector is developing may be able to block Alzheimer’s disease either on its own or in conjunction with antibody drugs.
Alector plans to initiate the first clinical trial on humans in the next one year and will start with frontotemporal dementia – a form of dementia prevalent in people who are in their 40s and sometimes younger. Under the deal with AbbVie, Alector will be involved in drug discovery, exploratory research as well as lead programs development. In the event that AbbVie exercises its option, the pharma giant will be involved in development and commercialization.
On Tuesday shares of AbbVie Inc fell by 2.98% to close the day at $91.69 a share.