DALLAS, TX -- May 19th, 2025 -- Alpha Cognition Inc. (NASDAQ: ACOG): Stonegate Capital Partners updates their coverage on Alpha Cognition Inc. (NASDAQ: ACOG). Alpha Cognition began 2025 by launching ZUNVEYL® (benzgalantamine) to the U.S. long-term care (LTC) market on March 17, 2025, delivering on its commercialization timeline and budget. Early clinician and patient feedback has been positive, citing successful initial patient outcomes and strong ordering momentum, with rapid product replenishment by wholesalers. The field team reported broad engagement across high-priority LTC accounts nationwide. Importantly, Medicare reimbursement was secured soon after launch, significantly improving access for patients in LTC settings. Management reiterated that all launch objectives remain on track and within budget, with commercial execution progressing as planned.
Company Updates:
Market Opportunity: Alzheimer’s disease (“AD”) affects 7 million Americans, with over 11 million prescriptions written annually. Yet more than half of patients stop treatment within a year due to side effects. The initial focus for ZUNVEYL is the LTC market, representing 36% of AD prescriptions (~$2B). Medicare coverage was achieved shortly after launch, addressing a critical barrier to access for a significant portion of the patient population and supporting the Company’s goal of capturing market share.
Commercial Launch and Outlook: The commercial launch of ZUNVEYL proceeded according to plan, with the Company’s sales force actively engaging the majority of targeted LTC facilities nationwide. Early adoption trends, reflected in broad product ordering and replenishment, have met management’s expectations with 1Q25 product revenues of $0.35M. Notably, the field team continues to report positive initial experiences from prescribers and patients. In 1Q25, Alpha Cognition recognized $2.6M in business development licensing revenue from its partnership with CMS Pharma, supporting strategic international expansion initiatives. Management continues to focus on disciplined execution, anticipating increasing product adoption and ongoing progress toward commercial objectives throughout 2025.
Intellectual Property & Pipeline: In 1Q25, ACOG strengthened its intellectual property portfolio by securing a new composition of matter patent in the U.S. covering the tablet formulation of benzgalantamine, extending domestic protection for ZUNVEYL through 2044 and global protection through 2041. The Company also received notice of an FDA extension for a method of use patent, with final details expected in 3Q25. ACOG continues to advance its pipeline with ongoing development of ALPHA-1062 for AD, broadening the Company’s reach in neurodegenerative and brain injury indications.
Financial Performance and Balance Sheet: ACOG ended the quarter with $45.5M in cash and cash equivalents, providing ~ 2 years runway at current utilization rates. For the quarter, R&D expenses were $0.41M, down from $0.92M in the prior year, while SG&A expenses rose to $5.4M due to commercialization investments. The Company reported a net loss of $2.0M, an improvement from $5.0M in 1Q24, as revenue from licensing and initial product sales helped offset higher launch costs.
Valuation: We use a DCF Model to guide our valuation. Our DCF analysis produces a valuation range of $31.58 to $42.36 with a mid-point of $36.30.
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