DALLAS, TX -- August 17, 2026 -- Alpha Cognition Inc. (NASDAQ: ACOG): Stonegate Capital Partners updates their coverage on Alpha Cognition Inc. (NASDAQ: ACOG). Alpha Cognition’s 2Q26 strengthens the ZUNVEYL launch setup, with results ahead of prior expectations and demand accelerating despite slower payer implementation. Net product revenue increased 71% q/q to $6.0M on 37% bottle growth, with no material stocking benefit and downstream PBM implementation unchanged at ~16%. In our view, quarter quality was better than the access backdrop suggests, as prescriptions, repeat use, and facility adoption advanced without broader formulary activation. June was the strongest demand month since launch, and management indicated growth continued into 3Q. The core setup is increasingly breadth + depth + payer upside: white space remains across homes and physicians, utilization is deepening, and broader PBM implementation remains incremental to growth.
ZUNVEYL: Bottles dispensed increased to 8,294 from 6,054 in 1Q26, including 2,997 in June, while HCP writers increased 27% q/q to 1,347. Repeat prescribers increased 29% to 1,024, with ~76% prescribing in multiple months, and cumulative writers reached 1,908 versus the Company’s ~2,000 FY26 goal. Homes with prescriptions increased 20% q/q to 1,095, with ~81% placing repeat orders. Growth occurred without payer expansion, with implementation ~16% despite two contracts covering ~45M lives, supporting broader coverage as incremental upside rather than required to sustain the launch. We believe prescriber productivity should benefit as physicians move beyond the 2–3 month experience period into more consistent repeat use. LTC opportunity remains sizable, with management identifying ~5,000 target homes and ~3,000 top-tier physicians nationally.
R&D: BEACON adds actionable real-world evidence; providers reported improvements in cognition, neuropsychiatric symptoms, activities of daily living, and reduced polypharmacy. CONVERGE remains on track for top-line data in 3Q26, with management expecting evidence to support prescriber education and payer discussions. RESOLVE is enrolling to expectations and expected to complete in 2Q27, with data anticipated in summer/fall 2027. A comparative PK study for the sublingual formulation is underway, with 3Q26 data expected to determine the clinical timeline. Management continues to prioritize LTC, with broader neurology expansion expected near operating profitability and payer coverage determining timing.
Quarterly Results: Total revenue was $6.1M, including $6.0M of ZUNVEYL product revenue, with GAAP gross product margin of ~94%. Operating expenses were $13.5M, including $11.5M of SG&A and $2.0M of R&D, resulting in a $7.8M operating loss and $8.8M net loss, or $(0.40)/share. 2Q26 cash was $41.4M. Management lowered FY26 R&D and SG&A guidance to $50M-$54M from $54M-$58M while maintaining its 2027 operating profitability target. The Galantos Pharma royalty settlement removes a future royalty burden and improves ZUNVEYL’s long-term economics. With commercial infrastructure largely in place, continued revenue scaling against the high-margin product profile and disciplined expense base should provide increasing operating and FCF leverage over time.
Valuation: We use a DCF Model to guide our valuation. Our DCF analysis produces a valuation range of $24.19 to $30.46 with a mid-point of $26.98.
