Alector reported a negative Phase III readout for its dementia candidate latozinemab, partnered with GSK, prompting a sharp stock drop and plans to cut roughly half of its workforce. The study failed to meet clinical endpoints despite biomarker changes; secondary and exploratory measures showed no meaningful clinical benefit. Company management announced an immediate restructuring to preserve core programs and reduce cash burn while it evaluates strategic options and leadership changes. The failure highlights continued uncertainty in neurodegenerative drug development and the high attrition risk for immune‑modulating strategies in frontotemporal dementia. Investors and industry watchers flagged the readout as another reminder of the challenges in translating biomarker modulation into clinical improvement for dementia, and the outcome will likely influence capital allocation and partnering dynamics in neurology R&D.