ACOG stock is undervalued, Raymond James says

Following news from Alpha Cognition (Alpha Cognition Stock Quote, Chart, News, Analysts, Financials CSE:ACOG), Raymond James analyst Rahul Sarugaser remains upbeat about the stock.

On September 27, Alpha Cognition announced of a new drug application to the FDA for its Alzheimer’s drug ALPHA-1062.

“We are excited about the potential impact and benefits that Alpha-1062 may have on the lives of patients battling mild-to-moderate Alzheimer’s disease. Our team has dedicated years of research and development to bringing this innovative therapeutic option to fruition,” CEO Michael McFadden said. “The submission of the new drug application is a testament to our unwavering commitment to improving patient outcomes and advancing the treatment of Alzheimer’s disease.”

Sarugaser gave his take on the development.

We see today’s submission as a significant positive step for ACOG following a long period of challenge in an unforgiving capital markets environment,” he wrote. “Should ALPHA-1062 clear the FDA, it would be only the 9th drug to receive full or accelerated approval for the treatment of AD, and only the 2nd drug that addresses AD symptoms to be approved this decade. (And, while a handful of disease-modifying AD drugs have been approved and launched recently, with varying degrees of success and controversy, we see ALPHA-1062 as a complementary therapy to even the best of these: no disease-modifying drug yet investigated acts to satisfactorily relieve active AD symptoms.) We believe ACOG has the potential to provide clinically meaningful symptom improvements to a very large population of AD patients—US AD cases: ~5.8 mln in 2020; ~8.4 mln by 2030; ~13.8 mln by 2050—by increasing the tolerability and bioavailability of a known, efficacious drug: an elegant, inexpensive, derisked solution to a big, challenging problem.”

In a research update to clients September 28, Sarugaser maintained his “Market Perform 3” rating and one-year price target of $1.00 on ACOG.