DALLAS, TX -- April 1st, 2025 -- Alpha Cognition Inc. (NASDAQ: ACOG): Stonegate Capital Partners updates their coverage on Alpha Cognition Inc. (NASDAQ: ACOG). Alpha Cognition exited FY25 with ZUNVEYL showing increasingly durable traction in long-term care, as 4Q25 net product revenue reached $2.5M and FY25 total revenue reached $10.2M, including $6.8M of ZUNVEYL sales. More importantly, demand indicators continued to inflect, with bottles dispensed rising 62% q/q to 4,941 with December alone reaching a record 1,859 bottle. Repeat ordering remained strong, supporting management’s view that ZUNVEYL is moving beyond early trial use and becoming more embedded in facility treatment protocols.
ZUNVEYL: In our view, the most important takeaway from 4Q25 was clearer evidence that ZUNVEYL adoption is scaling. Management reported 729 ordering homes in the quarter, with 82% repeat orders, alongside approximately 865 prescribers, 69% of whom were repeat writers. Supporting that traction, the field team reached 1,986 homes in 4Q25 and nearly 4,000 unique facilities since launch. Management also emphasized that the commercial message is increasingly resonating on behavioral benefit and tolerability, with physicians becoming more comfortable titrating patients to the 10mg dose after only two spontaneous GI adverse event reports have been filed as of quarter-end. This low number adverse event reports is significantly below our expectations. On access, Alpha Cognition signed its second national PBM contract, bringing coverage to two of the four major PBMs serving LTC, with early downstream traction expected in 2Q26 and broader implementation in 3Q26. Additional 2026 growth drivers include peer-to-peer education through 48 trained KOLs, a fully staffed expanded sales force, and a larger reimbursement team to improve payer pull-through.
R&D: Alpha Cognition’s 4Q25 update focused on generating additional data to support ZUNVEYL’s positioning and lifecycle expansion. The Company announced three studies, BEACON, CONVERGE, and RESOLVE, with BEACON and CONVERGE expected to generate LTC-focused data in 4Q26 and 3Q26, respectively, while RESOLVE is expected to begin in 2Q26 and could support both promotional and future regulatory efforts. Separately, the Company continues to advance the sublingual ALPHA-1062 formulation, with comparative PK work planned in 2Q26 and potential clinic entry in early 2027 pending supportive data and FDA feedback.
Financial Performance and Balance Sheet: Alpha Cognition reported 4Q25 total revenue of $2.8M, including $2.5M of ZUNVEYL net product sales and $259K of licensing revenue. Total 4Q25 operating expenses were $10.7M, with 4Q25 operating loss of $7.9M and net loss of $6.9M; for FY25, operating loss was $22.7M and net loss was $20.7M. The Company ended 2025 with $66.0M of unrestricted cash, including roughly $38M-$40M of net proceeds from the October equity raise, which management believes provides runway well into 2027. While no formal revenue guidance was provided, management expects continued sequential ZUNVEYL sales growth through 2026 and guided to 2026 operating expenses of $54M-$58M, reflecting ongoing investment in commercialization, sales and marketing, and the newly announced studies.
Valuation: We use a DCF Model to guide our valuation. Our DCF analysis produces a valuation range of $25.15 to $33.16 with a mid-point of $28.68.
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