Algernon Pharmaceuticals rebrands as Algernon Health, shifts to AD diagnostics

VANCOUVER - Algernon Pharmaceuticals Inc. (CSE:AGN) (FRANKFURT:AGW0) (OTCQB:AGNPF), a $54 million market cap healthcare company whose shares have declined 64% over the past year, announced Thursday it is changing its name to Algernon Health, reflecting a strategic pivot toward the Alzheimer’s Disease (AD) diagnostic market. According to InvestingPro analysis, the stock is currently trading below its Fair Value, suggesting potential upside for investors interested in the company’s strategic transformation.

The Canadian healthcare company plans to establish specialized neuroimaging clinics across North America featuring FDA-cleared brain-specific Positron Emission Tomography (PET) scanning systems that detect amyloid plaques in patients with lower radiation exposure than standard PET/CT machines. With a solid current ratio of 2.9 and an overall Financial Health score rated as FAIR by InvestingPro, the company appears well-positioned to execute this expansion strategy.

These PET scans are covered by Medicare, Medicaid, and private insurance in the U.S. and are required to confirm amyloid presence before patients can receive FDA-approved AD treatments like Eli Lilly’s Kisunla or Eisai/Biogen’s Leqembi.

The company cited a market opportunity stemming from insufficient scanner availability for brain-specific imaging, as most PET/CT scanners in the U.S. are prioritized for cancer diagnostics and cardiac imaging.

"The introduction of dedicated neuroimaging clinics provides the Company with a clear pathway to revenue utilizing a technology already U.S. FDA-cleared and covered by U.S. Medicare and Medicaid and private insurance," the company stated in its press release.

Beyond Alzheimer’s diagnostics, Algernon’s planned clinics will offer additional brain PET scans for other forms of dementia, epilepsy, neuro-oncology, and movement disorders.

The company also identified potential revenue from providing imaging services to pharmaceutical companies conducting clinical trials, noting there are 162 AD drugs currently under development. The company’s existing revenue of $2.12 million has shown impressive growth of 23.7% over the last twelve months. Discover more detailed financial insights and growth projections with InvestingPro’s comprehensive research reports, available for over 1,400 US-listed companies.

Algernon will maintain its existing subsidiary, Algernon NeuroScience, which is investigating a proprietary form of DMT for stroke and traumatic brain injury. The company also holds a 20% stake in Seyltx, a private U.S. drug development company advancing a chronic cough treatment.

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