Hold Rating on Vigil Neuroscience Amid Sanofi Acquisition and VG-3927 Developments

Vigil Neuroscience Inc (VIGL – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Andrew Fein from H.C. Wainwright maintained a Hold rating on the stock and has a $8.00 price target.

Andrew Fein’s rating is based on the recent developments surrounding Vigil Neuroscience Inc, particularly the acquisition agreement with Sanofi. The acquisition, valued at $470 million upfront with additional contingent payments, underscores the potential of Vigil’s Alzheimer’s drug, VG-3927. However, the change in rating to Hold reflects the fact that the acquisition terms have set a new price target of $8, down from $14, aligning with the acquisition’s expected closure in 2025.
Moreover, while the Phase 1 clinical trial data for VG-3927 showed promising safety and target engagement results, the drug’s future success remains contingent on further clinical developments. The acquisition by Sanofi adds a Phase 2 ready asset to their pipeline, but the transition of Vigil’s other program, VGL101, back to Amgen indicates a narrowed focus. These factors contribute to a cautious outlook, justifying the Hold rating as the market awaits further progress in the drug’s development and the completion of the acquisition deal.

According to TipRanks, Fein is a 3-star analyst with an average return of 1.4% and a 42.31% success rate. Fein covers the Healthcare sector, focusing on stocks such as Insmed, Palvella Therapeutics, and Wave Life Sciences.

In another report released on May 23, Mizuho Securities also downgraded the stock to a Hold with a $8.00 price target.