Alzamend Neuro’s Chief Financial Officer David Katzoff demonstrated confidence in the company’s future by purchasing 53,000 shares on September 26th. The transaction, disclosed in a filing with the Securities and Exchange Commission, took place at $0.193 per share for a total value of $10,229.
This share purchase signifies Katzoff’s faith in Alzamend Neuro’s pipeline and growth prospects. It comes during a volatile time in biotech, as rising interest rates and recession fears have hit the sector hard. Many clinical-stage companies like Alzamend have seen their share prices decline significantly in 2022.
However, insiders have been scooping up shares of the company amidst the downturn. Over the past 12 months, net purchase activity by insiders totaled 1.07 million shares across 18 buys. This indicates that those closest to Alzamend believe the current valuation underestimates its potential.
Katzoff has been CFO of Alzamend Neuro since April 2021. He is a Certified Public Accountant with over 25 years of accounting and finance experience. Prior to joining Alzamend, he served as CFO and Corporate Secretary at several publicly-traded biotechnology companies.
With this recent purchase, Katzoff now directly holds 81,000 shares of Alzamend Neuro stock. Given his expertise in biotech finance and role as CFO, his buying signals optimism about the company’s future growth prospects despite current market sentiment.
About Alzamend Neuro
Alzamend Neuro is an early clinical-stage biopharmaceutical company focused on developing novel products for the treatment of neurodegenerative diseases and psychiatric disorders. The company’s pipeline is led by AL001, a lithium-based ionic cocrystal therapy for dementia and Alzheimer’s disease.
AL001 is currently in Phase II clinical trials, with topline results expected in the first half of 2023. Thus far, AL001 has shown promise as a well-tolerated therapeutic with cognitive benefits in early-stage Alzheimer’s patients.
Alzamend’s pipeline also contains AL002, an immunotherapy targeting Tau oligomers and amyloid beta for Alzheimer’s and other neurodegenerative diseases. Preclinical studies of AL002 demonstrated its ability to restore memory function and cognition. Phase I clinical trials are slated for the second half of 2023.
With multiple shots on goal in the Alzheimer’s space, Alzamend aims to bring novel therapies to a complex, heterogenous disease affecting over 6 million Americans. There are only a handful of approved Alzheimer’s treatments, representing a significant unmet need.
As the global population ages, the market opportunity within Alzheimer’s and dementia is enormous. Over 55 million people worldwide currently live with dementia, with Alzheimer’s accounting for 60-70% of cases. Alzheimer’s diagnoses are expected to triple by 2050 as lifespans increase.
Any treatment that can slow or stop cognitive decline in Alzheimer’s stands to reap billions in revenue given the sheer size of the patient population. Alzamend is hoping AL001 and AL002 prove to be such therapies.
Recent Results and Upcoming Catalysts
This summer, Alzamend announced positive Phase II data on AL001 in early Alzheimer’s patients over 6 months of treatment. Patients taking AL001 showed statistically significant improvements in cognition compared to the placebo group as measured by ADAS-Cog11, a key clinical endpoint. AL001 also had a favorable safety profile.
These top line data were very encouraging and support continued advancement of AL001. More detailed results are expected by year end 2022, which will enable refinement of the Phase III study protocol. Alzamend intends to meet with the FDA in early 2023 to finalize plans for the pivotal Phase III trial of AL001.
Besides the Phase II data, Alzamend has several upcoming milestones:
- Full Phase II results for AL001 before year end 2022
- Pre-IND meeting with FDA to discuss AL002 Phase I trial in 2H 2022
- Phase III trial initiation of AL001 in early 2023
- Beginning Phase I study of AL002 in late 2023
With multiple clinical catalysts on the horizon, it is an exciting time for the company. Additional positive data could significantly de-risk the pipeline and demonstrate these drugs’ potential in Alzheimer’s disease.
In sum, Alzamend’s CFO buying over 50,000 shares indicates experts within the company see upside not yet reflected in the stock price. Along with insider buying throughout 2022, this suggests confidence in Alzamend’s pipeline despite market volatility.
Upcoming milestones for AL001 and AL002 represent derisking events that may enable upside for the stock. Still, drug development is risky, and negative data could impact the share price. But Alzamend’s management seems bullish on the prospects for these Alzheimer’s therapies.
While the biotech sector has struggled in 2022, insiders are signaling now may be an opportune time to build positions. As Katzoff’s purchase shows, those closest to Alzamend Neuro believe the company has significant potential to create future value. More data and execution on key catalysts in 2023 will determine if this potential is realized.