Vigil Neuroscience's Focus On Neurodegenerative Diseases: Analyst Says Pipeline Offers Upside Opportunities To Valuation

JMP Securities has initiated coverage on Vigil Neuroscience Inc VIGL, noting the company's focus on neurodegenerative diseases.

Vigil's lead development candidate, VGL101, is a fully human monoclonal antibody agonist of TREM2 for axonal spheroids and pigmented glia (ALSP), a rare, genetically defined, and fatal neurodegenerative disease caused by microglial dysfunction.

The analysts Jason Butler and Roy Buchanan initiate with a Market Outperform rating and a price target of 23.

The analysts note that the strategy and the expertise assembled by the company can reduce translational development risk and increase the clinical probability of success.

Anticipating the interim results for VGL101 in ALSP, which will cover the initial six patients after six months of treatment, JMP is awaiting clear indications of its impact on MRI-based brain volume assessments, white matter lesions, and pertinent CSF biomarkers. 

The confidence is driven by robust mechanistic rationale, compelling preclinical data, and the successful target engagement and proof-of-pharmacology results obtained from the Phase 1 trial.

The addressable ALSP opportunity is attractive. The annual incidence in the U.S. is ~1k-2k, with a prevalence of ~10k patients. JMP projects peak sales of around $1.1 billion in 2031 and applies a 45% PoS.

JMP also writes that additional neurodegenerative diseases linked to microglia dysfunction could be addressed by VGL101 and/or Vigil's small molecule TREM2 platform, representing an upside opportunity to valuation at this time.

Price Action: VIGL shares are down 2.81% at $6.39 on the last check Wednesday.