Jefferies cuts Vigil Neuroscience stock rating, target to $8 from $19

Published 22/05/2025, 19:06
Jefferies cuts Vigil Neuroscience stock rating, target to $8 from $19

On Thursday, Jefferies analyst Andrew Tsai downgraded Vigil Neuroscience Inc (NASDAQ:VIGL) stock from Buy to Hold, significantly reducing the price target to $8.00 from the previous $19.00. This adjustment comes in light of the anticipated acquisition of Vigil Neuroscience by Sanofi (NASDAQ:SNY), expected to conclude in Q3:25. The deal includes a purchase price of $8 per share, along with a contingent value right (CVR) of an additional $2 per share.

Tsai highlighted that Sanofi will gain access to VG-3927, an oral TREM2 modulator that has yielded supportive Phase I results in studies involving healthy individuals, the elderly, and Alzheimer’s patients. Vigil Neuroscience had planned to initiate a Phase II study for Alzheimer’s disease with VG-3927 in Q3:25. The analyst believes that VG-3927 could be distinct from other TREM2 antibodies targeting Alzheimer’s, as well as from treatments focusing on abeta and tau proteins.

Additionally, Tsai noted the return of VGL101, a TREM2 antibody developed for the treatment of Adult-onset Leukoencephalopathy with Axonal Spheroids and Pigmented Glia (ALSP), to Amgen (AMGN). According to InvestingPro data, Amgen maintains a strong position in the biotechnology sector with a market capitalization of $146 billion and robust financial health scores. The company has demonstrated consistent performance with a 15.6% revenue growth over the last twelve months and maintains a healthy dividend yield of 3.5%. This development is part of the broader strategic changes happening within Vigil Neuroscience as it prepares for the acquisition by Sanofi.

The downgrade and price target adjustment reflect the terms of the acquisition agreement and the potential of Vigil Neuroscience’s assets, particularly VG-3927, in the treatment of Alzheimer’s disease. The transaction is poised to enhance Sanofi’s portfolio with a novel therapeutic approach that may offer benefits over existing Alzheimer’s treatments.

As the market processes this information, investors are now assessing Vigil Neuroscience’s stock based on the new price target and hold rating. The forthcoming acquisition by Sanofi marks a significant milestone for the company and its ongoing research in neurodegenerative diseases. For deeper insights into biotechnology sector valuations and comprehensive analysis of companies like Amgen, investors can access detailed Pro Research Reports and industry analysis through InvestingPro, which covers over 1,400 US stocks with expert insights and detailed financial metrics.

In other recent news, Amgen Inc (NASDAQ:AMGN). reported impressive first-quarter 2025 earnings, exceeding expectations with an earnings per share of $4.90 and revenue of $8.15 billion, both surpassing forecasts. Despite these strong financial results, Cantor Fitzgerald maintained a Neutral rating on Amgen, highlighting the company’s performance in its Rare Disease portfolio as a key area to watch in the upcoming quarter. S&P Global Ratings revised Amgen’s outlook from negative to stable, acknowledging the company’s debt reduction efforts following its acquisition of Horizon. Meanwhile, Erste Group downgraded Amgen’s stock from Buy to Hold, citing anticipated slowdowns in revenue and profit growth for 2025 and 2026. Piper Sandler also adjusted its price target for Amgen to $328, reflecting increased R&D spending projections, though it maintained an Overweight rating due to strong product volume growth. Additionally, Amgen is engaged in a tax dispute with the IRS, which could impact its financial leverage in the future. These developments collectively illustrate Amgen’s current financial landscape and strategic focus areas.

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