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MOUNTAIN VIEW, Calif. - Alto Neuroscience, Inc. (NYSE:ANRO), currently valued at $164.63 million, announced Monday it has secured approximately $50 million in a private placement financing led by Perceptive Advisors, with participation from new and existing investors including Commodore Capital, Vestal Point Capital, Vivo Capital, and other biotech-focused investors. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet, though it’s currently experiencing rapid cash burn.
The clinical-stage biopharmaceutical company plans to use the proceeds to accelerate development of ALTO-207, a fixed-dose combination of pramipexole and ondansetron, for treatment resistant depression (TRD). Following what the company described as a successful FDA meeting, Alto expects to initiate a Phase 2b study of ALTO-207 by mid-2026, which could potentially serve as a pivotal study. The company also plans to begin a Phase 3 study in TRD patients by early 2027. With a current ratio of 18.43, InvestingPro analysis shows the company’s liquid assets significantly exceed its short-term obligations, providing financial flexibility for these development plans.
In the financing, Alto is selling approximately 3.8 million shares of common stock at $5.914 per share and pre-funded warrants to purchase up to about 4.6 million shares to certain investors. The transaction is expected to close on October 21, 2025, subject to customary closing conditions.
ALTO-207 combines pramipexole, a dopamine D3-preferring D3/D2 agonist with demonstrated antidepressant effects, and ondansetron, a selective 5-HT3 receptor antagonist. According to the company, this combination is designed to enable higher dosing of pramipexole by mitigating dose-limiting adverse events.
In a previous Phase 2a clinical trial with 32 depression patients, the company reported that ALTO-207 met primary and secondary endpoints, demonstrating improvements on the Montgomery–Åsberg Depression Rating Scale compared to placebo. The market has responded positively to these developments, with ANRO’s stock showing a remarkable 169% return over the past six months. Analyst targets for the stock range from $4 to $15, reflecting diverse views on the company’s potential. Get more detailed insights and access to additional ProTips with InvestingPro.
The securities being sold have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an effective registration statement or applicable exemption from registration requirements.
This information is based on a press release statement from Alto Neuroscience.
In other recent news, Alto Neuroscience has received a significant boost as the U.S. Food and Drug Administration (FDA) granted Fast Track designation to its investigational drug ALTO-101. This designation aims to expedite the development and review process for the treatment of cognitive impairment associated with schizophrenia, addressing a critical unmet medical need. Such a status could lead to more frequent interactions with the FDA and eligibility for accelerated approval. Additionally, H.C. Wainwright has reiterated its Buy rating for Alto Neuroscience, maintaining a price target of $10.00 after discussions with the company’s management. The firm emphasized Alto’s innovative precision psychiatry approach, which incorporates advanced methods like electroencephalography and cognitive testing. In corporate developments, Alto Neuroscience has appointed Raymond Sanchez, M.D., to its Board of Directors, effective August 2025. Dr. Sanchez brings extensive experience from his previous role at Cerevel Therapeutics Holdings and his current advisory position at Bain Capital Life Sciences.
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