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Investing.com - William Blair maintained its outperform rating on Alto Neuroscience (NYSE:ANRO) stock on Thursday following mixed clinical trial results for the company’s ALTO-203 drug candidate. According to InvestingPro data, analysts maintain a strong buy consensus with price targets ranging from $4 to $18.
The drug showed evidence of predicted activity by promoting wakefulness in patients, consistent with expectations for H3 histamine inverse agonists. ALTO-203 also demonstrated improvements in sustained attention and potentially cognition, with these benefits enhanced in patients with a specific EEG biomarker identified by Alto’s platform.
The trial results revealed mixed data on depression-related endpoints, suggesting the drug might not be ideal for major depressive disorder (MDD). William Blair indicated an alternative patient population with hypersomnia or a different indication such as ADHD, narcolepsy, or idiopathic hypersomnia might be better suited for ALTO-203.
Alto management has suggested current financing conditions might lead the company toward potential nondilutive partnering opportunities for ALTO-203 after additional analysis and development planning are completed.
Alto shares fell approximately 10% in response to the trial missing conventional MDD efficacy endpoints, though William Blair continues to view the Phase IIb readout of ALTO-300 in MDD expected mid-2026 as the most important upcoming catalyst for the stock.
In other recent news, Alto Neuroscience has reported a series of developments concerning its drug trials and strategic acquisitions. The company announced mixed results from its Phase 2 trial of ALTO-203 for major depressive disorder, with the drug showing improvements in sustained attention and wakefulness but not meeting the primary endpoint on the BL-VAS mood scale. Stifel maintained its Buy rating for Alto Neuroscience, highlighting the exploratory nature of the trial and the potential of ALTO-203 in patients with specific EEG biomarker profiles. Additionally, Alto Neuroscience has acquired ALTO-207, a treatment for treatment-resistant depression, from Chase Therapeutics Corporation. This acquisition is seen as a strategic move to bolster Alto’s biomarker-driven platform, with plans to initiate a Phase 2b trial by mid-2026. H.C. Wainwright analysts have reaffirmed their Buy rating for Alto, citing confidence in the company’s strategic direction. Furthermore, Alto Neuroscience has presented favorable tolerability data for its drug ALTO-300 at a recent clinical meeting, noting no significant liver enzyme elevations in ongoing trials. The company continues to focus on developing precision medicines for neuropsychiatric disorders, leveraging its Precision Psychiatry Platform™ to identify responsive patients.
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