Alector and GSK partnership to end after dementia, Alzheimer's drug failures

July 8 (Reuters) - Alector said on Wednesday that GSK had terminated their neuroscience collaboration agreement covering two experimental antibody drugs after both the drug candidates suffered clinical setbacks.

The decision follows the failure of a late-stage study of latozinemab in a rare inherited form of frontotemporal dementia last year and the discontinuation of a mid-stage Alzheimer's disease trial of nivisnebart in April.

Here are further details:

• GSK's termination notice relates to the companies' 2021 collaboration and license agreement for the development of monoclonal antibodies latozinemab and nivisnebart.

• As per the terms of the deal announced in 2021, Alector received $700 million upfront from GSK and could have received up to $1.5 billion in further payments tied to drug development-related milestones and royalties.

• The failure of latozinemab prompted Alector to cut nearly half its workforce, while the nivisnebart trial was discontinued after an interim analysis showed the study was unlikely to meet its primary goal.

• The termination will take effect on January 2 next year, following a 180-day notice period that began when GSK provided written notice on July 6.

(Reporting by Puyaan Singh in Bengaluru; Editing by Maju Samuel)