DALLAS, TX -- August 15th, 2025 -- Alpha Cognition Inc. (NASDAQ: ACOG): Stonegate Capital Partners updates their coverage on Alpha Cognition Inc. (NASDAQ: ACOG). Alpha Cognition advanced its first full quarter of ZUNVEYL® commercialization in 2Q25, driving meaningful early adoption in the U.S. long-term care (LTC) market and securing a key regulatory milestone in China. By quarter-end, ZUNVEYL (benzgalantamine) had been ordered in over 300 LTC facilities across priority regions, with 65% placing repeat orders, signaling strong clinical confidence and operational fit. The sales team engaged more than 3,700 healthcare professionals, generating both new and repeat prescriptions. Clinician feedback continued to highlight ZUNVEYL’s cognitive and behavioral benefits alongside a favorable tolerability profile. The Company also secured its first national Medicare Part D contract with no prior authorization required, enhancing patient access ahead of schedule.
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. Additionally, we see ACOG generating revenues abroad in FY26, opening a new market.
Commercial Launch and Outlook: In 2Q25, ZUNVEYL generated $1.6M in net product sales, bringing year-to-date net product revenue to ~$2.0M. Licensing revenue totaled $0.08M from the CMS partnership. Early utilization trends, including high repeat-order rates and growing formulary wins, support management’s expectation for continued adoption momentum into 2H25. We expect that the Company will continue to focus on supporting LTC homes and pharmacies on navigating the regulatory landscape while also securing another national contract before year end.
Intellectual Property & Pipeline: The Company completed the Department of Defense–funded Bomb Blast pre-clinical study of ALPHA-1062 in a repetitive mild traumatic brain injury model. Results showed reductions in neuroinflammation, neuropathology. Work on a sublingual ALPHA-1062 formulation for patients with dysphagia or aphasia remains on track for formulation completion and taste testing in 1Q26, followed by a comparative PK study and IND submission in 1H26
Financial Performance and Balance Sheet: Total revenue was $1.66M in 2Q25, compared to none in 2Q24, driven by ZUNVEYL sales and licensing income. R&D expenses fell to $0.32M from $0.97M a year ago, while SG&A rose to $6.54M from $1.43M, reflecting commercialization investments. The net operating loss was $5.74M, and the net loss widened to $10.49M ($0.65/sh) from $2.12M due to a $5.17M non-cash loss on warrant liabilities. ACOG ended the quarter with $39.4M in cash and equivalents, providing ~two years of runway at current burn rates. Management now expects 2025 operating expenses of $34–38M, reduced from prior guidance through cost optimization.
Valuation: We use a DCF Model to guide our valuation. Our DCF analysis produces a valuation range of $32.69 to $43.65 with a mid-point of $37.49.
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