Micro Cap Biotech Secures $60M to Advance Alzheimer's Treatment, Shares Surge

2025-12-23 10:43:00 ET

Alzheimer’s disease is the most common form of dementia, primarily affecting people over the age of 65. It progressively damages brain cells through the buildup of abnormal proteins (known as plaques and tangles) which destroy neurons and interfere with communication throughout the brain.

Developing effective prevention or treatment remains extremely challenging because Alzheimer’s is driven by multiple interacting factors, including inflammation, genetics, and possibly infections, rather than a single cause. In addition, many therapies struggle to reach the brain due to its natural protective barrier. For these reasons, any meaningful advancement in Alzheimer’s research attracts significant attention from both scientists and investors. Today, one micro-cap company captured headlines as it continues its effort to potentially bring relief to millions of patients affected by this devastating disease.

Vaccinex, Inc. (OTCPK: VCNX) announced a $60 million revenue-sharing agreement with Pepinemab Development Venture, LP (PDV) to fund an expanded Phase 2b clinical trial of pepinemab for the treatment of Alzheimer’s disease. Pepinemab is an antibody designed to inhibit the SEMA4D pathway, which Vaccinex believes plays a key role in Alzheimer’s-related brain inflammation and degeneration. Under the agreement, PDV, an investment entity formed by existing Vaccinex investor FCMI, will provide the financing in exchange for a share of future proceeds tied to pepinemab, including 50% of revenues from neurological indications and 25% from non-neurological uses.

The financing builds on encouraging preclinical and clinical results showing that pepinemab may reduce harmful interactions between brain immune cells, protect blood vessels in the brain, and lower disease-related proteins linked to synaptic loss and tau pathology. Prior studies in Huntington’s disease and early Alzheimer’s patients suggest the drug is well tolerated and may slow cognitive decline when administered early. More recently, research presented at the 2025 CTAD conference highlighted a genetic pathway involving SEMA4D that regulates a subset of astrocytes associated with cognitive decline. Data indicate that pepinemab reduces these astrocytes in the brain, correlating with slower disease progression, further supporting its continued development as a potential new therapy for Alzheimer’s disease.

Shares of VCNX are soaring in mid-morning trading following the announcement, up 56.97% to $1.0988.

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