Alto Neuroscience, Inc. (NYSE: ANRO) recently announced the launch of its significantly expanded initial public offering (IPO), offering 8,040,000 shares of common stock at a price of $16.00 per share. This pricing was at the top end of its initial estimate, which ranged from $14 to $16 per share, aiming for an estimated gross revenue of roughly $128.6 million, prior to the deduction of underwriting discounts, commissions, and additional offering-related expenses. The company has earmarked these funds for the further development of its innovative drug candidates, Alto 100 through Alto 300.
Trading of Alto’s shares is slated to commence on the New York Stock Exchange on February 2, 2024, under the ticker “ANRO,” with the IPO expected to conclude by February 6, 2024, contingent upon customary closing prerequisites.
Positioned as a trailblazer in the biopharmaceutical sector, Alto Neuroscience is dedicated to advancing personalized and efficacious treatment solutions by harnessing the power of neurobiology. The company’s strategic approach, as detailed on its website, revolves around the integration of AI-driven brain biomarkers to precisely match patients with the optimal Alto drug, heralding a new era in psychiatric drug development.
Alto has proudly announced the successful completion of Phase 2a trials for its leading product candidates, ALTO-100 and ALTO-300, involving over 200 patients for each drug. These trials were pivotal in identifying specific patient groups with a higher likelihood of responding to the treatments, based on distinct biomarker profiles. This biomarker-driven strategy facilitated the launch of a placebo-controlled, double-blind, randomized Phase 2b trial for each candidate, targeting patients with Major Depressive Disorder (MDD) identified through objective biomarker criteria.
It was also reported by Green Market Report that Numinus Wellness has divested its stake in Alto.
From a financial standpoint, Alto Neuroscience has principally financed its operations through the sale of convertible preferred stock, amassing approximately $142.7 million, alongside borrowings under a loan and security agreement. Despite having not yet achieved revenue from product sales, the company has navigated through recurring financial losses since its inception in 2019, with net losses of $27.7 million and $9.2 million for the years ending December 31, 2022, and 2021, respectively. As of September 30, 2023, Alto reported an accumulated deficit of $65.7 million, alongside cash reserves of $51.3 million. The company anticipates ongoing operational losses and negative cash flow, having bolstered its finances with an additional net gain of approximately $44.4 million in November 2023 through the sale of Series C convertible preferred stock.
The company is actively progressing in its Phase 2b trials for ALTO-100, targeting 266 MDD patients identified through a cognitive biomarker, with expectations to release initial data in the latter half of 2024. ALTO-101, a novel small molecule targeting cognitive impairment associated with schizophrenia (CIAS), has demonstrated promising results in early-phase trials and is set for further development. Similarly, the ALTO-300 trial, focusing on MDD patients identified through EEG biomarkers, aims to enroll 200 participants, with preliminary results anticipated in early 2025. Alto estimates that these biomarkers may be prevalent in a significant portion of the MDD patient population.
Furthermore, Alto plans to initiate Phase 2 proof-of-concept trials for ALTO-101 and ALTO-203 within the first half of 2024, with results expected by 2025. These trials will explore the efficacy of ALTO-101 in CIAS patients and ALTO-203 in MDD patients exhibiting pronounced anhedonia. Additionally, the development of ALTO-202, an oral NMDA receptor antagonist for MDD treatment, is also on the company’s agenda.