Alto Neuroscience is enjoying a solid cash cushion - Grow Life 420
Debra Borchardt

Alto Neuroscience is enjoying a solid cash cushion

March 26, 2024

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Alto Neuroscience, Inc. (NYSE: ANRO) reported financial results for the full year ending December 31, 2023, on March 21, 2024. The company has no revenue at this stage. Alto reported a net loss of $36.3 million for 2023 versus $27.7 million for 2022.

The net cash used in operating activities was $33.4 million for 2023 versus $20.4 million for 2022. Alto said the increase in cash used was primarily the result of the increase in net loss of $8.6 million attributed to its increased spending on research and development expenses, and the decrease in accrued liabilities during 2023 versus the increase in accrued liabilities during 2022 of $2.1 million. At the end of 2023, the company had $82.5 million in cash and cash equivalents.

“2024 is shaping up to be a transformational year for Alto as we advance our mission of redefining the treatment paradigm for patients with neuropsychiatric disorders,” said Amit Etkin, M.D., Ph.D., founder and CEO of Alto Neuroscience. “Our lead product candidates, ALTO-100 and ALTO-300, have demonstrated positive Phase 2a results and we remain focused on clinical execution to deliver value to patients and our shareholders. Looking ahead, we are on track to report data from the Phase 2b depression studies of ALTO-100 and ALTO-300 in the second half of 2024 and the first half of 2025, respectively, in biomarker characterized patients.”

Cash cushion

Alto noted that it completed its upsized initial public offering (IPO) in February 2024, resulting in net proceeds of approximately $133 million. Following the closing of the company’s IPO, it had approximately $210 million of cash and cash equivalents as of February 29, 2024. Enough money to see the company through to 2027.
The company also said it received cash from financing activities of $68.1 million for 2023, related to the issuance of Series B convertible preferred stock of $25.0 million, and issuance of Series C preferred stock of $45.0 million, partially offset by share issuance costs of $0.7 million and payment of deferred offering costs of $1.4 million. The company also had cash of $43.8 million from 2022, related to the issuance of Series B convertible preferred stock of $34.3 million and the issuance of its Term Loan of $9.8 million, partially offset by share issuance costs of $0.2 million.
CFO Nick Smith said, “As we begin 2024, Alto is in its strongest financial position to date. With the proceeds from our IPO, combined with our existing cash balance, we are well-positioned to read out data from at least four important studies across our clinical-stage pipeline over the next two years.”

 

Pipeline

Alto said it was currently developing ALTO-100, ALTO-300 and ALTO-203 for the treatment of MDD. The annual report read, “Patients with MDD have historically been treated with a variety of anti-depressant medications and, accordingly, we believe these product candidates, if approved, would compete with several currently approved therapeutics, including: Auvelity (marketed by Axsome Therapeutics, Inc.); Prozac (marketed by Eli Lilly and Company); Rexulti (marketed by Otsuka Pharmaceutical Co., Ltd. and H. Lundbeck A/S); Trintellix (marketed by Takeda Pharmaceuticals Company Limited and H. Lundbeck A/S); Vraylar and Viibryd (marketed by AbbVie Inc.); Wellbutrin (marketed by GSK plc); and Zoloft and Effexor (marketed by Pfizer Inc.).” Enrollment is ongoing in the Alto-100 study and the company said it expects to report topline data in the second half of 2024.
 
The company added, “We are also developing ALTO-101 for the treatment of schizophrenia. While there remains significant unmet need in schizophrenia, we believe ALTO-101, if approved, may face competition from product candidates also being developed for negative or cognitive symptoms of schizophrenia, including by: Boehringer Ingelheim, Cerevel Therapeutics Holdings, Inc., Karuna Therapeutics, Inc., Merck & Co. Inc., Minerva Neurosciences, Inc., and Neurocrine Biosciences, Inc., as well as other earlier stage competitors.” The company said it expects to report data from a Phase 1 ALTO-101 study evaluating the PK properties of the transdermal formulation in the first half of 2024, and subsequently initiate a proof-of-concept study in patients with CIAS.

The post Alto Neuroscience is enjoying a solid cash cushion appeared first on Green Market Report.



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via www.KahliBuds.com

Debra Borchardt, KahliBuds, 420GrowLife

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