VANCOUVER, British Columbia - Alpha Cognition Inc. (NASDAQ:ACOG), a biopharmaceutical company currently valued at $2.49 million, and China Medical (TASE:PMCN) System Holdings Limited (CMS) (867.HK), have entered into an exclusive agreement to license the Alzheimer's disease treatment ZUNVEYL in various Asian territories, excluding Japan, as well as in Australia and New Zealand.
Under the terms of the deal, Alpha Cognition will receive $44 million, including upfront payments and additional sums tied to development and commercial milestones. The company is also set to receive royalties on the net sales of ZUNVEYL in these regions. CMS will oversee the regulatory processes, development, manufacturing, and commercialization of the drug in the licensed territories. According to InvestingPro data, this deal comes at a crucial time as Alpha Cognition reported a net loss of $14.71 million in the last twelve months.
ZUNVEYL, approved in the United States for mild-to-moderate Alzheimer's disease, is an acetylcholinesterase inhibitor that has shown potential for minimal gastrointestinal side effects due to its active metabolite. This metabolite binds to neuronal nicotinic receptors, which may positively impact cognition.
Michael McFadden, CEO of Alpha Cognition, expressed confidence in CMS's ability to navigate the regulatory and commercial landscape in Asia, Australia, and New Zealand. He cited CMS's successful track record in developing and commercializing central nervous system therapies in China as a key factor in the partnership, especially given the estimated 50 million individuals living with Alzheimer's in the region.
Alpha Cognition anticipates the launch of ZUNVEYL in the United States within the first quarter of 2025 and plans to present a corporate update and launch strategy on January 28, 2025. The company's stock has faced significant headwinds, declining nearly 60% over the past six months, and InvestingPro analysis suggests the stock is currently slightly overvalued. InvestingPro subscribers have access to 8 additional key insights about ACOG's financial health and growth prospects.
The information in this article is based on a press release statement from Alpha Cognition Inc. and China Medical System Holdings Limited.
In other recent news, Alpha Cognition has made significant financial moves including an equity offering and private sale of securities. The company issued 8,695,653 common shares, raising approximately $46.15 million in net proceeds, which could increase to $52.48 million if underwriters fully exercise their option. These funds are designated for commercializing ZUNVEYL in Alzheimer's Disease, research and development, commercial CMC activities, working capital, and general corporate purposes.
In the private sale, Alpha Cognition issued a representative’s purchase warrant for up to 34,196 shares of its common stock, exercisable from 2025 until 2029 at an initial price of $7.18 per share. Concurrent with the offering, the company also issued warrants to purchase up to 608,696 common shares to the underwriting representative and its designees, exercisable at $7.18 per share starting in 2025, and expiring in 2029.
In addition, senior convertible notes automatically converted into 801,412 common shares at $5.75 per share upon the closing of the offering, with buyers receiving an additional 50% of identical warrants, resulting in the issuance of 215,418 new warrants. After the offering, the exercise price of the warrants was adjusted to $7.19 per share. These are some of the recent developments at Alpha Cognition.
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