Nucor earnings beat by $0.08, revenue fell short of estimates
On Thursday, Guggenheim Securities analyst Yatin Suneja adjusted the rating on Vigil Neuroscience Inc (NASDAQ: VIGL), shifting from Buy to Neutral and reducing the price target to $8.00 from the previous $16.00. The change in rating and price target comes as Sanofi (NASDAQ:SNY) (SAN.PAR) announced plans to acquire Vigil Neuroscience for $8 per share in cash, with an additional $2 in contingent value rights (CVR), totaling an equity value of around $470 million. The acquisition price represents a significant premium to VIGL’s current market capitalization of $108 million, according to InvestingPro data, which also shows the stock has delivered a strong 36% return year-to-date.
The acquisition by Sanofi includes VG-3927, Vigil’s oral small molecule TREM2 agonist, which is slated to enter Phase II clinical trials this year for the treatment of Alzheimer’s disease. Shareholders of Vigil Neuroscience will also receive a non-transferable CVR of $2 per share, which will be paid upon the first commercial sale of VG-3927. This strategic move is expected to enhance Sanofi’s neurology pipeline and align with its neurodegeneration strategy. InvestingPro analysis shows Vigil maintains a healthy financial position with a current ratio of 2.97, indicating strong liquidity to support its clinical development programs.
Previously, Sanofi had made a $40 million equity investment in VG-3927 and secured the first right of negotiation, which is included in the acquisition payment. The Phase I trials for VG-3927 have been completed, with plans to progress to Phase II in mid-2025.
Additionally, Iluzanebart (VGL101), another Vigil Neuroscience program, is not part of the Sanofi acquisition and will revert to Amgen (AMGN), the original licensor. Vigil anticipates that the agreement with Amgen will conclude before the acquisition by Sanofi is finalized.
The companies expect the transaction to be completed in the third quarter of 2025. The analyst notes that this all-cash transaction for a Phase II ready asset is a positive development for the industry and supports TREM2 as a credible target for Alzheimer’s disease. For investors interested in analyzing similar biotech M&A opportunities, InvestingPro offers comprehensive financial health scores and valuation metrics for companies in the sector, along with 8 additional ProTips for VIGL that could provide valuable insights into comparable investment opportunities.
In other recent news, Vigil Neuroscience Inc. has been acquired by Sanofi for $8 per share, focusing on its promising Alzheimer’s drug candidate, VG-3927. This acquisition represents a significant premium of nearly 250% over Vigil’s initial public offering price, despite being below the IPO value. Analysts from Stifel have maintained a Buy rating on Vigil Neuroscience with a price target of $11, suggesting optimism about the acquisition’s potential benefits for shareholders. Conversely, William Blair and JMP analysts have downgraded the stock to Market Perform, reflecting the acquisition’s impact and the uncertain outcomes of Vigil’s IGNITE study. The acquisition by Sanofi does not include VGL101, which will return to Amgen Inc (NASDAQ:AMGN)., and a contingent value right of $2 per share is also part of the deal. Vigil has also announced the advancement of VG-3927 into Phase 2 clinical trials, following promising Phase 1 results. Meanwhile, H.C. Wainwright has adjusted its price target for Vigil Neuroscience to $14, maintaining a Buy rating, as the company anticipates sharing final data from the IGNITE Phase 2 trial in 2025. These developments highlight the dynamic nature of the biotech sector and the strategic maneuvers within it.
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