Alpha Cognition (ACOG) investor relations material

Product overview and differentiation

• ZUNVEYL, a benzgalantamine prodrug, was FDA approved in Q3 2024 for mild to moderate Alzheimer's disease, targeting 80% of patients with this condition.

• The drug uses a proprietary coating to minimize GI side effects and improve brain delivery, resulting in less than 2% GI issues and 0% insomnia in clinical use.

• Demonstrates robust effects on cognition and behavioral symptoms, with proven delay in disease progression and improved tolerability compared to leading competitors.

• Differentiation points include superior tolerability, no insomnia, and strong cognitive and behavioral benefits due to α7 nicotinic modulation.

• The product is positioned as highly disruptive in the acetylcholinesterase inhibitor class, addressing key unmet needs in the market.

Commercialization strategy and market focus

• Commercial launch began in April 2024, focusing on the U.S. long-term care and nursing home market, a $2 billion opportunity.

• Initial efforts generated over 1,500 prescriptions in the first quarter, with 15% of targeted nursing homes and 400 physicians prescribing, two-thirds of whom are repeat prescribers.

• Sales team of 50 targets high-density metro areas, calling on medical directors, nursing home staff, and consultant psychiatrists.

• Early payer access secured with a national PBM contract covering 17 million lives, with ongoing support for reimbursement and prior authorizations.

• Plans to expand into neurology and primary care segments after achieving break-even, expected in 2027.

Financial performance and outlook

• First quarter revenue reached $1.7 million, with expense guidance for 2024 at $34–$38 million.

• Profitability targeted for 2027, supported by a recent $35 million capital raise, bringing cash to nearly $70 million.

• Projected drug potential of $200–$600 million if 10–25% market share is achieved, with the total acetylcholinesterase inhibitor market estimated at $6–$7 billion.

• Anticipates sharp revenue acceleration in 2026 as physician adoption grows.

• Cap table will reflect about 27 million shares post-capital raise.