Polaris Ventures Reduces Alector Stake; No Longer Significant Holder

Ticker: ALEC · Form: SC 13G/A · Filed: 2024-02-09T00:00:00.000Z

Sentiment: bearish

Topics: institutional-ownership, ownership-change, insider-selling, biotech

TL;DR

**Polaris Ventures is out of Alector, signaling a major ownership shift.**

AI Summary

Polaris Venture Partners VI, L.P. filed an amended Schedule 13G/A for Alector, Inc. on February 9, 2024, indicating a change in their beneficial ownership as of December 31, 2023. This filing, an Amendment No. 4, suggests that Polaris Venture Partners VI, L.P. and its associated entities, including Polaris Venture Management Co VI, L.L.C. and several individuals like Amir Nashat and Terrance G. McGuire, are no longer reporting significant beneficial ownership in Alector, Inc. This matters to investors because it signals that a major institutional investor has reduced its stake, potentially indicating a shift in their investment strategy or outlook on Alector's future.

Why It Matters

This filing indicates a significant institutional investor, Polaris Venture Partners VI, L.P., has reduced its stake in Alector, Inc., which could be interpreted as a loss of confidence or a strategic portfolio reallocation.

Risk Assessment

Risk Level: medium — A major institutional investor reducing its stake can create selling pressure or signal underlying concerns about the company's prospects.

Analyst Insight

Investors should investigate why Polaris Venture Partners VI, L.P. reduced its stake in Alector, Inc. and consider if this signals a broader negative outlook on the company's fundamentals or future prospects before making investment decisions.

Key Numbers

014442107 — CUSIP Number (identifies Alector, Inc.'s Common Stock)
December 31, 2023 — Date of Event (the date as of which the ownership change occurred)
Amendment No. 4 — Filing Amendment Number (indicates this is the fourth amendment to the original 13G filing)

Key Players & Entities

Polaris Venture Partners VI, L.P. (company) — the reporting person filing the SC 13G/A
Alector, Inc. (company) — the subject company whose securities are being reported
Polaris Venture Management Co VI, L.L.C. (company) — a group member associated with the reporting person
Amir Nashat (person) — a group member associated with the reporting person
Terrance G. McGuire (person) — a group member associated with the reporting person
$0.0001 (dollar_amount) — par value per share of Alector, Inc. Common Stock

Forward-Looking Statements

Alector, Inc.'s stock price may experience short-term volatility due to the perceived lack of institutional confidence. (Alector, Inc.) — medium confidence, target: 3 months

FAQ

What type of filing is this and what does it generally indicate?

This is an SC 13G/A filing, specifically an Amendment No. 4. An SC 13G/A is an amendment to a Schedule 13G, which is filed by passive investors who own more than 5% but less than 20% of a company's stock. An amendment (like this one) typically indicates a change in their beneficial ownership, often a decrease below the reporting threshold or a significant change in their stake.

Who is the 'Reporting Person' in this filing?

The 'Reporting Person' is Polaris Venture Partners VI, L.P., located at ONE MARINA PARK DRIVE, 8TH FLOOR, BOSTON, MA 02210.

What is the 'Subject Company' and what is its CUSIP number?

The 'Subject Company' is Alector, Inc., a BIOLOGICAL PRODUCTS company (SIC 2836), with a CUSIP Number of 014442107 for its Common Stock, par value $0.0001 per share.

What was the 'Date of Event Which Requires Filing of this Statement'?

The 'Date of Event Which Requires Filing of this Statement' was December 31, 2023, meaning the ownership change being reported occurred as of that date.

Which rule under the Securities Exchange Act of 1934 is this Schedule 13G filed under?

This Schedule 13G/A is filed under Rule 13d-1(d), as indicated by the checked box in the filing. This rule is typically used for amendments to previously filed 13G statements.

From the Filing

0001193125-24-030176.txt : 20240209 0001193125-24-030176.hdr.sgml : 20240209 20240209164856 ACCESSION NUMBER: 0001193125-24-030176 CONFORMED SUBMISSION TYPE: SC 13G/A PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20240209 DATE AS OF CHANGE: 20240209 GROUP MEMBERS: AMIR NASHAT GROUP MEMBERS: BRIAN CHEE GROUP MEMBERS: BRYCE YOUNGREN GROUP MEMBERS: DAVID BARRETT GROUP MEMBERS: JONATHAN A. FLINT GROUP MEMBERS: POLARIS VENTURE MANAGEMENT CO VI, L.L.C. GROUP MEMBERS: POLARIS VENTURE PARTNERS FOUNDERS FUND VI, L.P. GROUP MEMBERS: POLARIS VENTURE PARTNERS VI (AIV), L.P. GROUP MEMBERS: POLARIS VENTURE PARTNERS VI (AIV-B), L.P. GROUP MEMBERS: TERRANCE G. MCGUIRE SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: Alector, Inc. CENTRAL INDEX KEY: 0001653087 STANDARD INDUSTRIAL CLASSIFICATION: BIOLOGICAL PRODUCTS (NO DIAGNOSTIC SUBSTANCES) [2836] ORGANIZATION NAME: 03 Life Sciences IRS NUMBER: 822933343 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-90858 FILM NUMBER: 24615757 BUSINESS ADDRESS: STREET 1: 131 OYSTER POINT BLVD., SUITE 600 CITY: SOUTH SAN FRANCISCO STATE: CA ZIP: 94080 BUSINESS PHONE: 415-231-5660 MAIL ADDRESS: STREET 1: 131 OYSTER POINT BLVD., SUITE 600 CITY: SOUTH SAN FRANCISCO STATE: CA ZIP: 94080 FORMER COMPANY: FORMER CONFORMED NAME: Alector LLC DATE OF NAME CHANGE: 20150915 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: Polaris Venture Partners VI, L.P. CENTRAL INDEX KEY: 0001493463 ORGANIZATION NAME: IRS NUMBER: 000000000 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13G/A BUSINESS ADDRESS: STREET 1: ONE MARINA PARK DRIVE, 8TH FLOOR CITY: BOSTON STATE: MA ZIP: 02210 BUSINESS PHONE: 781-290-0770 MAIL ADDRESS: STREET 1: ONE MARINA PARK DRIVE, 8TH FLOOR CITY: BOSTON STATE: MA ZIP: 02210 SC 13G/A 1 d728701dsc13ga.htm SC 13G/A SC 13G/A SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Schedule 13G (Rule 13d-102) INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULES 13d-1 (b), (c) AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO 13d-2 (b) (Amendment No. 4) Alector, Inc. (Name of Issuer) Common Stock, par value $0.0001 per share (Title of Class of Securities) 014442107 (CUSIP Number) December 31, 2023 (Date of Event Which Requires Filing of this Statement) Check the appropriate box to designate the rule pursuant to which this Schedule is filed: ☐ Rule 13d-1(b) ☐ Rule 13d-1(c) ☒ Rule 13d-1(d) * The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of Section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). (Continued on following pages) CUSIP #014442107  1 NAME OF REPORTING PERSONS Polaris Venture Partners VI, L.P.  2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) ☐  (b) ☒  3 SEC USE ONLY  4 CITIZENSHIP OR PLACE OF ORGANIZATION Delaware NUMBER OF SHARES BENEFICIALLY   OWNED BY EACH REPORTING PERSON WITH  5 SOLE VOTING POWER 498,468 (1)  6 SHARED VOTING POWER 0  7 SOLE DISPOSITIVE POWER 498,468 (1)  8 SHARED DISPOSITIVE POWER 0  9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON 498,468 (1) 10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN SHARES ☐ 11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9 0.5% (2) 12 TYPE OF REPORTING PERSON PN (1) All such shares are held of record by PVP VI (as defined in Item 2(a) of the Original Schedule 13G). PVM VI (as defined in Item 2(a) of