Alpha Cognition Is 'Under-Followed' As Alzheimer Drug Targets $2 Billion Long Term Care Market: Analyst

On Tuesday, HC Wainwright initiated coverage on Alpha Cognition Inc ACOG, noting a new twist on a tried-and-tested treatment paradigm.

Alpha Cognition’s lead product, Zunveyl (benzgalantamine), is a prodrug of galantamine—a well-known, long-marketed acetyl cholinesterase inhibitor initially launched in the U.S. by Johnson & Johnson JNJ in 2001 under the trade name Reminyl (later changed to Razadyne in 2005).

In July 2024, the FDA approved Zunveyl under the 505(b)(2) pathway.

On Tuesday, Alpha Cognition announced the official commercial launch of Zunveyl, a new treatment for mild to moderate Alzheimer’s disease.

Also Read: Alpha Cognition Inks $44 Million Licensing Pact For Its Alzheimer’s Drug In China

The commercial strategy addresses the challenges of the long-term care market and the largest segment for Alzheimer’s disease. It’s also a $2 billion market opportunity.

Cholinesterase inhibitors (ChEIs) remain the most widely used anti-AD drugs. However, the existing marketed ChEIs are all associated with a significant incidence of gastrointestinal (GI) side effects (e.g., nausea, vomiting, and diarrhea) that typically occur in 30-40% of patients given these drugs.

Existing marketed ChEIs are also associated with a high incidence of sleep disturbances.

HC Wainwright writes the drug will be just as effective as the original molecule while offering better safety and tolerability. Analyst Raghuram Selvaraju estimates Alpha Cognition could reach $540 million in peak annual U.S. sales for Zunveyl by the late 2030s.

HC Wainwright has initiated with a Buy rating with a price target of $20.

The analyst expects Alpha Cognition to reach cash flow breakeven next year, driven by Zunveyl’s uptake.

Alpha Cognition’s share price has not increased in anticipation of the Zunveyl U.S. launch. The company is “comparatively under-followed,” Selvaraju wrote.

Alpha Cognition was originally listed on the Canadian Securities Exchange. It voluntarily delisted from that exchange in December 2024 after securing a NASDAQ listing.

Alpha Cognition’s modest “sub-$50M enterprise value” belies the company’s considerable long-term promise, Selvaraju added.

The analyst expects Zunveyl uptake and market penetration metrics to drive favorable sentiment going forward.”

Price Action: ACOG stock is up 3.34% at $5.88 at the last check Tuesday.

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