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On Tuesday, Stifel analysts downgraded Vigil Neuroscience Inc (NASDAQ: VIGL) stock from a Buy to a Hold rating, concurrently reducing the price target from $11.00 to $8.00. This adjustment comes in response to the impending acquisition of Vigil Neuroscience by SNY for approximately $470 million on a fully-diluted basis, which translates to $8 per share. The stock has seen remarkable momentum, with InvestingPro data showing a 217% surge in the past week, now trading near its 52-week high of $7.95.
The revised price target is based on a 95% probability that the acquisition deal will be finalized. The completion of the takeover is anticipated in the third quarter of 2025, pending customary closing conditions and approval by the majority of Vigil Neuroscience’s common stockholders. Notably, individuals who hold approximately 16.2% of the company’s total common shares outstanding have already committed their support through signed voting agreements. According to InvestingPro, VIGL maintains strong financial health with a current ratio of 2.97 and more cash than debt on its balance sheet, factors that could support a smooth transaction process.
Furthermore, Stifel has accounted for a contingent value right (CVR) in their evaluation, which could potentially add $2 per share based on the first commercial sale of VG-3927, Vigil Neuroscience’s investigational treatment. However, the contribution of the CVR to the target price is considered minor due to its non-transferable nature and the high risk associated with the program’s development stage.
The CVR is factored into the new price target with a highly risk-adjusted credit, reflecting a 10% probability of success in 2031, discounted to its present value. The analysts believe this adjustment appropriately mirrors the risk profile of VG-3927 at this point in time.
In other recent news, Vigil Neuroscience Inc. has been the focus of several significant developments. The company held its 2025 Annual Meeting of Stockholders, where shareholders approved the election of two Class I directors and ratified PricewaterhouseCoopers LLP as the independent auditor for the fiscal year ending December 31, 2025. Meanwhile, Mizuho (NYSE:MFG) Securities downgraded Vigil Neuroscience’s stock rating from Outperform to Neutral, reflecting the terms of its acquisition by Sanofi (NASDAQ:SNY), which includes a price target adjustment to $8.00 per share. Similarly, Guggenheim Securities also downgraded the stock from Buy to Neutral, halving the price target from $16.00 to $8.00, in light of the acquisition deal.
Sanofi’s acquisition of Vigil Neuroscience involves purchasing the company for $8 per share in cash, along with an additional $2 in contingent value rights, pending the commercial success of their Alzheimer’s treatment, VG-3927. Stifel analysts maintained a Buy rating with an $11.00 price target, viewing the acquisition positively despite the offer being below the company’s IPO price. William Blair analysts, however, downgraded Vigil Neuroscience to Market Perform, citing the $8 per share acquisition price as fair under current market conditions. The acquisition, expected to finalize in the third quarter of 2025, excludes Vigil’s asset VGL101, which will revert to Amgen (NASDAQ:AMGN). These developments underscore the dynamic nature of the biotech industry and Vigil’s strategic positioning within it.
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