Alector announced that an antibody developed under its $700 million deal with GlaxoSmithKline failed to meet its primary endpoint in a Phase 3 dementia study, prompting an immediate strategic pullback. The biotech will stop work on the asset and undertake sweeping cost cuts, including plans to reduce its workforce by roughly half. The failure triggered management changes and a reorientation of R&D priorities. The asset—latozinemab (reported in company statements and coverage)—was central to Alector’s pipeline strategy and its collaboration terms with GSK. Investors reacted sharply after the readout, reflecting concern about late‑stage validation risk for antibody programs in neurodegeneration. The company said it will refocus resources on core programs and pursue a search for a new R&D leader. Industry watchers note the readout underscores the difficulty of translating promising early‑stage biology in neuroinflammation into robust clinical benefit in diverse dementia populations. Alector’s move will reshape near‑term partnership and hiring activity in the Bay Area biotech cluster.