Alpha Cognition Inc. Q2 FY2025 earnings call

• Successful commercial launch of ZUNVEYL for mild to moderate Alzheimer's disease, with over 3,700 HCPs contacted in long-term care market and prescriptions written in over 300 nursing homes, 65% of which have repeat orders.
• Medical progress with ZUNVEYL showing cognitive improvement and behavioral reduction, 5 abstracts accepted for publication with 3 presentations at AAIC.
• R&D updates: Sublingual formulation work to be completed in Q1 2026, Bomb Blast preclinical study with ALPHA-1062 showing reduction in neuroinflammation and toxic Tau forms.
• Business development: Progress with CMS Pharmaceuticals in China, ZUNVEYL application accepted for review in China, partner on track to file in 4 additional countries by end of 2025.
• Commercial progress in Q2: ZUNVEYL ordered in over 300 long-term care homes, 65% repeat orders, sales team engaged with 1,564 prescribers, 90% of orders filled.

For the second quarter of 2025, Alpha Cognition generated total revenue of $1.7 million. This included $1.6 million in net product sales from ZUNVEYL and $81,000 in licensing revenue. Total costs and expenses were $7.4 million, resulting in an operating loss of $5.7 million. The net loss was $10.5 million or $0.65 per share. As of June 30, 2025, the company had approximately $39.4 million in unrestricted cash and cash equivalents.

• Full year 2025 operating expense anticipated to be in the range of $34 million to $38 million, reflecting cost optimization and efficient resource allocation.
• No revenue projections provided at this time.

• Payer-related hurdles, particularly with prior authorizations in long-term care, though 90% of orders have been filled.
• Potential delays in approval process due to increased demand and prior authorization requirements.

Q: Could you characterize the typical profile of a repeat prescriber of ZUNVEYL?

A: Most repeat prescribers are high-volume nursing home facilities with many Alzheimer's patients, and the team is diligent on key targets identified during quarterly reviews.

Q: What's the state of contracting by end of 2025?

A: Expect at least one more large national plan contracted by end of 2025, with ongoing discussions with regional payers.

Q: Color on prior authorization front?

A: Prior authorizations increased with increased demand, but 90% of orders are filled, and the team is adapting daily to handle them.

Q: Monthly net revenue run rate in third quarter?

A: Anticipated range of $575 million to $625 million depending on contract execution.

Q: When to expect second $3 million tranche from CMS?

A: Expect it at the last quarter of 2025 based on current progress with CMS.

Q: Any change in hockey stick revenue curve expectation?

A: Current expectations remain same, ex U.S. revenues not expected to change substantially in next few quarters, becoming meaningful in late 2026 or early 2027.

Q: Operating expense ramp in 2026?

A: Anticipate operating expenses in $34 million to $38 million range to level out over next few quarters