DALLAS, TX -- April 1st, 2025 -- Alpha Cognition Inc. (NASDAQ: ACOG): Stonegate Capital Partners updates their coverage on Alpha Cognition Inc. (NASDAQ: ACOG). Alpha Cognition had a strong 2024 after raising $52.8M and uplisting to NASDAQ, significantly enhancing its capital base and market visibility. It completed commercial manufacturing for its lead product ZUNVEYL (benzgalantamine), secured a new U.S. patent extending exclusivity through 2044, and concluded phase one of a Department of Defense-funded study demonstrating the potential to treat head trauma from blasts.
Company Updates:
Flagship Product: Approved by the FDA in July 2024 for mild-to-moderate Alzheimer’s, ZUNVEYL is the second oral therapy of the decade to receive such approval. Its novel delivery avoids gastrointestinal absorption, significantly reducing common side effects that often lead to treatment discontinuation. A partnership with the U.S. Department of Defense is also evaluating ZUNVEYL for traumatic brain injury (mTBI), a major unmet need.
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). Its improved tolerability and cognitive benefits, combined with high insurance coverage (65–70% with $0 co-pay), position it for strong adoption.
Go to Market and Outlook: ZUNVEYL launched in the U.S. in March 2025, with a commercialization team bringing 100+ years of combined CNS and LTC experience. Early reports are extremely positive, with the pace of adoption being in-line with expectations. We anticipate that this go to market strategy will result in hockey-stick-like revenue growth over the next several quarters. A $44.0M licensing deal with China Medical Systems Holdings, signed in January 2025, supports expansion into additional geographies and we expect another international partnerships to be in development. Additionally, ACOG’s strong management team provides further confidence in the Company's ability to execute its commercialization strategy effectively. We are encouraged by management’s track record of setting and meeting its stated targets, further de-risking the Company’s potential.
Pipeline and Alternative Uses: ACOG is advancing its pipeline through a DoD collaboration showing benzgalantamine’s promise in treating bomb-blast-related brain trauma and has completed the first phase of its pre-clinical study demonstrating efficacy and safety. We expect further information to be made available in the coming quarters. In early 2025, the company also reacquired two programs: one for mTBI-related cognitive impairment and another targeting acute pancreatitis. U.S. IP protection for ZUNVEYL is secured through 2044, allowing for significant runway.
Financial Performance and Balance Sheet: Alpha Cognition reported cash and cash equivalents of ~$48.5M at 4Q24, significantly strengthened by proceeds of $52.8M from shares issued through its NASDAQ listing. The Company's current assets increased substantially to $50.3M from $1.9M in 2023, driven by strategic financing and preparations for the commercial launch of ZUNVEYL, providing the Company with a strong financial foundation for ongoing commercialization activities and future growth.
Valuation: We use a DCF Model to guide our valuation. Our DCF analysis produces a valuation range of $30.07 to $40.89 with a mid-point of $34.79.
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