Alpha Cognition upgraded at Raymond James

With catalysts on the horizon, Raymond James analyst Rahul Sarugaser has upped his rating and price target on Alpha Cognition (Alpha Cognition Stock Quote, Chart, News, Analysts, Financials CSE:ACOG).

In a research update to clients July 15, the analyst raised his rating on ACOG from “Market Perform 3” to “Outperform 2”, while hiking his price target from $1.00 to $2.00.

Sarugaser summarized where the company is at right now.

“ACOG’s NDA is currently under review with the U.S. FDA. Given ALPHA-1062’s regulatory path hinges on safety and bioequivalence with galantamine (an approved and commonly-prescribed generic), we see this as a relatively low-risk regulatory process—particularly given ALPHA-1062’s pivotal (505(b)(2)) bioequivalence study yielded a clean (positive) read-out in Jun. 2022 (our note)—in an area of significant unmet need,” he said.

The analyst notes that, if it gets the nod, Alpha-1062 would be only second drug approved for Alzheimer’s Dementia this decade.

“Should ALPHA-1062 be approved, it would make the drug only the 9th ever to receive approval for AD, and only the 2nd drug approved this decade (aduhelm notwithstanding, which was approved but failed to garner reimbursement), following BIIB’s lecanemab, which is expected to hit multi-blockbuster status,” he wrote. “If approved, ALPHA-1062, which is symptom-modifying, could be used in concert with lecanemab, which is disease-modifying, suggesting that ALPHA-1062 could ride the coattails of lecanamab’s anticipated success. As such, we model max. Rev. opportunity at ~US$500 mln ”

What does Alpha Cognition do? (via Raymond James)

“Alpha Cognition Inc. is a Vancouver-based biopharmaceutical company in the late stages of developing treatments for neurodegenerative diseases, such as Alzheimer’s Dementia (AD) and Amyotrophic Lateral Sclerosis (ALS). ACOG’s lead candidate, Alpha-1062, is a patented new chemical entity that is being developed as a new generation acetylcholinesterase inhibitor (AChEI) for the treatment of Alzheimer’s disease that gives rise to minimal gastrointestinal side effects, a significant differentiating feature among AChEIs.”