Alpha Cognition Inc. Common Stock 2026 Q2 Earnings Call

Thank you, Sachi. Good afternoon, everyone, and thank you for joining us today for Alpha Cognition's second quarter 2026 financial results conference call. Today, after the close of market, the company issued a press release announcing these results. On the call with me are Alpha Cognition Chief Executive Officer, Michael McFadden, and Chief Operating Officer, Lauren D'Angelo. Today's call is being made available via the investors section of the company's website at www.alphacognition.com. During the course of this call, management may make certain forward-looking statements regarding future events and the company's future performance. These forward-looking statements reflect Alpha Cognition's current perspective on existing trends and information. Any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, including those noted in the risk factors section of the company's latest SEC filings. Actual results may differ materially from those projected in these forward-looking statements.

For the benefit of those of you who may be listening to the replay, this call is being held and recorded on August 13, 2026. Since then, the company may have made additional announcements related to the topics discussed. Please reference the company's most recent press releases and current filings with the SEC. Alpha Cognition declines any obligation to update these forward-looking statements except as required by applicable securities laws. I will now turn the call over to Michael.

Michael? Thank you, Henry. Good afternoon, everyone.

Welcome to today's call. The second quarter of 2026 represents another important quarter of commercialization for ZUNVEYL, the first new oral Alzheimer's treatment approved in more than 15 years. It was a strong quarter of execution with clear sequential growth in ZUNVEYL demand, expansion in prescriber adoption, increased nursing home penetration, and continued progress with evidence generation to clinically support ZUNVEYL. We continue to execute with discipline and confidence, and I believe this quarter demonstrates that ZUNVEYL's commercial trajectory is tracking well with our expectations as we continue to scale the brand in the long-term care segment. In Q2, we generated approximately $6 million in net product revenues, representing approximately 71% quarter-over-quarter growth versus Q1 2026.

While we are pleased with ZUNVEYL's trajectory, we are still in the early phases of the product's commercial phase and remain optimistic that we will continue to see signs of sustained product performance and adoption in the long-term care setting. Looking at the quarter, monthly prescription volumes strengthened consistently with high single-digit sequential growth each month. All KPIs were positive, including prescriber number increases, nursing home prescriptions, and repeat prescriptions. Overall, we believe we are on track with our 2026 strategic priorities as we continue to drive prescription growth and build a durable path toward operating profitability in 2027. Turning to our clinical and medical programs, we continued to advance our evidence generation priorities in Q2, which we believe will strengthen ZUNVEYL's positioning with both payers and healthcare providers over the long term. During the second quarter, the company reported positive top-line results from the BEACON study.

We initiated CONVERGE, a retrospective data review in long-term care, and we initiated RESOLVE with sites selected, sites activated, and initial patient enrollment underway. Of note, the BEACON study demonstrated that following initiation of ZUNVEYL, providers observed improvements in cognition, improvements in neuropsychiatric symptoms, and improvements in ADLs, along with reductions in polypharmacy. These are all meaningful outcomes for long-term care practitioners treating patients with mild to moderate Alzheimer's disease. Based on these positive findings, our medical team has submitted the data for presentation at several upcoming medical meetings. We look forward to announcing additional details as presentations are accepted and confirmed. We expect CONVERGE top-line data in Q3.

We believe this will provide the company two nursing home data sets that can be utilized to inform stakeholders of the changes in cognition, neuropsychiatric behaviors, and ADLs they might expect to see when utilizing ZUNVEYL in the nursing home setting. Henry will provide financials in detail in a moment, and Lauren will provide a more comprehensive commercial update thereafter. But first, let me make a few high-level remarks on our financial position. Our operating spend of $13.5 million this quarter continues to reflect a deliberate investment in our commercial capabilities and in studies that support our positioning with healthcare providers and payers. As I said last quarter, I want to be direct about the way we are thinking about this investment. Our net product loss this quarter reflects the company's intentional scaling.

We are deploying capital against our highest return opportunities in the business, including expanding prescriber reach, building real-world evidence to support ZUNVEYL, and unlocking additional payer access. These are investments that will drive the company to achieve operating profitability in 2027 and beyond, and we continue to remain on track with these targets. I will now turn it over to Henry.

Thank you, Michael. Good afternoon again, everyone. As I review our second quarter 2026 financial results, please also refer to today's press release and 10-Q to be filed this afternoon. For the second quarter of 2026, ZUNVEYL generated approximately $6 million in net product revenue, compared with approximately $3.5 million in the first quarter, representing approximately a 71% sequential growth quarter-over-quarter. Total revenue for the quarter was $6.1 million, compared to $1.7 million in the prior year period, driven primarily by ZUNVEYL product sales. From a margin perspective, GAAP gross product margin was approximately 94% for the second quarter, based on net product sales of $6 million and cost of product sales of approximately $0.4 million. Regarding spending, total operating expenses for the second quarter were $13.5 million, including $11.5 million of SG&A and $2 million of R&D expense.

SG&A reflects continued investment behind the commercial infrastructure, payer engagement, marketing resources, and public company operations. R&D reflects continued investment in evidence generation and development programs required to build ZUNVEYL for the long term. Net loss for the second quarter was $8.8 million, or $0.40 per share, compared with a net loss of $13.2 million or $0.82 per share in the prior year period. As of June 30, 2026, the company had $41.4 million in cash and cash equivalents and $57.9 million in total current assets. Total current liabilities were $6.4 million, resulting in working capital of approximately $51.5 million. During the quarter, we also completed the early settlement of Organtus' former royalty obligation. This transaction simplifies our capital structure, eliminates future royalty burdens on the product economics, and increases our long-term participation in the value created by ZUNVEYL.

We believe this was a prudent use of capital and a strategic step that improves the future cash flows and strengthens the economics of the franchise as the brand continues to grow. We continue to believe our current capital position, together with expected future sales of ZUNVEYL and potential milestones and royalties, can support our plan towards operating profitability in 2027. Lastly, based on the strong commercial performance of ZUNVEYL and our continued focus on operating discipline, we are lowering our full-year 2026 operating expense guidance from our previous range of $54 million-$58 million to a new range of $50 million-$54 million. While we remain committed to supporting the growth of ZUNVEYL and advancing key evidence generation initiatives, we have identified opportunities to operate more efficiently across the organization. This revised outlook reflects our confidence in our ability to balance growth investments with prudent expense management.

With that, I will now turn the call over to Lauren to discuss commercial progress.

Lauren? Thank you, Henry. I am pleased to provide a detailed update on our Q2 2026 commercial performance.