Stifel initiated coverage of Vigil Neuroscience (NASDAQ:VIGL) with a “buy” rating and $24 price target. The stock closed at $12.90 on Jan. 31.
Vigil is focused on precision medicine approaches to treat dementia, with a sub-focus on microglia, a key population of immune cells in the brain.
“What’s interesting about Vigil’s approach with VGL101 is that the drug mechanism (TREM2 agonism) is informed by multiple layers of genetic evidence which show that TREM2 hypofunction is linked to Alzheimer’s and other rarer neurodegenerative conditions,” writes analyst Paul Mattels.
Mr. Mattels said that to date, Vigil has shown preclinically that its TREM2 agonist can boost microglial function in the brain, with a reasonable safety profile to advance into clinical testing. “We also point to human proof-of-principle data from [a collaboration between Abbie and Alector’s] AL001 (now in Phase 2 in Alzheimer’s disease) as offering further support for the TREM2 approach,” he added.
In what’s becoming a hot but also more competitive space, “what we like about Vigil is the company’s initial focus on rarer conditions (adult-onset leukoencephalopathy and Alzheimer’s patients with TREM2 mutations) who may be enriched clinically to VGL101,” Mr. Mattels said.
In addition, he said Vigil and investors are in a position to “benefit if the Abbie/Alector Alzheimer’s trial shows efficacy. Vigil also is developing a TREM2 small molecule which, though early, could prove best-in-class.”
