Alto Neuroscience Inc. (ANRO:NYSE) released results of its Phase 2 proof-of-concept trial for ALTO-101 on April 1, 2026. The proprietary drug is intended to treat cognitive impairment associated with schizophrenia (CIAS).
The trial showed that ALTO-101 did not achieve statistical significance, as observed on primary electroencephalography (EEG) or cognitive endpoints, compared to the placebo offered. However, the drug did show some improvements. ". . . The study demonstrated directional improvements across certain EEG measures, including a near-significant effect on theta-ITC (n=83, d=0.34, p=0.052) — a measure correlated with cognitive performance across datasets. In a pre-specified analysis in a more cognitively impaired subgroup (n=59), ALTO-101 exhibited nominally significant effects on theta-ITC compared to placebo (d=0.44, p=0.03). Further, certain EEG measures, including theta-ITC, showed improvements from day 5 to day 10 in the trial, suggesting a longer treatment period may elucidate greater effects," according to Businesswire on April 1, 2026. ALTO-101 also showed roughly equal rates of nausea and vomiting compared to the placebo, which is remarkable for a PDE4 inhibitor pharmaceutical class.
Alto has created an oral version of ALTO-101 and hopes to find uses for it within various partnerships.
The company is now turning its focus to a different drug, ALTO-207, which is formulated to battle treatment-resistant depression. Alto is on track to initiate a Phase 2b clinical trial in the first half of this year. The drug is ". . . a fixed-dose combination of pramipexole (a dopamine D3/D2 agonist) and ondansetron (a 5-HT3 antagonist), designed to enable rapid titration to higher pramipexole doses by mitigating dose-limiting nausea and vomiting."
In a statement by the company, Founder and CEO Amit Etkin, M.D., Ph.D. said, "While we are disappointed that the ALTO-101 data did not deliver the signal we were seeking, it is an exploratory program, and we remain heavily focused on ALTO-207, our most advanced program in development for treatment -resistant depression — which is supported by strong prior clinical data and external validation. We appreciate the commitment of the patients and clinical teams who participated in the ALTO-101 trial. We are excited about our oral, modified-release formulation of ALTO-101 to potentially provide benefit to patients, and we intend to seek partnering opportunities to drive future value for this program.”
Alto Neuroscience Inc. describes itself as ". . . on a mission to redefine psychiatry by leveraging neurobiology to develop personalized and highly effective treatment options. The company is headquartered in California.
A Growing Mental Health Market
"Mental health conditions are becoming more common due to various societal, economic, and personal stressors. According to the World Health Organization (WHO), depression is a leading cause of disability globally, affecting more than 280 million people. Similarly, anxiety disorders impact a large portion of the population, often co-occurring with depression and other mental health conditions," according to a 2025 article by Global Market Insights. Rates of depression climbed during the COVID-19 pandemic and have stayed elevated.
PR Newswire called out Alto Neuroscience as a major leader in bipolar depression treatment development in a March 11, 2026, article. The same article projected that the bipolar depression treatment market will grow in the next 10 years and noted that the U.S. was the largest market for depression treatment in 2025. America's young population, the 3.4% of Americans between 18 and 25, is the largest target market.
Improved diagnostic tools and stress-related lifestyle changes, along with genetic predisposition, are expected to increase cases of bipolar depression in the next 10 years.
An article from Behavioral Health News in the fall of 2025 said, "The global market for psychotropic medications is currently valued at US$23 billion, and it is expected to reach US$30 billion by 2030." This rise has been attributed to ". . . age-related increase in the prevalence of mood disorders, widespread use of antidepressant medications among primary care providers, and initiatives driven by health insurers that incentivize 'adherence to' prescription medication regimens, among many others."
Alto Neuroscience Gets Buy and Outperform Ratings
Multiple analysts have offered research reports about Alto Neuroscience over the past month, all focused on ALTO-207's upcoming trials.
On March 16, 2026, Andrew Tsai, Matthew Barcus, John Cox, and Brian Balchin of Jeffries released a research report giving Alto Neuroscience a 'Buy' rating, with a target price of US$35.00, which they raised from US$25.00. Their reasoning included upcoming data from drugs the company is developing to treat CIAS schizophrenia, major depressive disorder, and bipolar depression.
Stifel released a research report from Paul Matteis on March 17, 2026, stating, "We remain Buy rated on ANRO following their 4Q25 earnings, which was an in-line report. Most importantly for the stock, ANRO remains on track to initiate the ph2b TRD study for ALTO-207 (pramiprexole+ondansetron) in 1H26 — in our view, '207 is ANRO's most compelling asset given the strength of the data for pramipexole for depression, the successful examples of two drug combos in neuropsych (Auvelity, KarXT), and the accelerated development timelines, with a ph3 expected to initiate in early 2027." Matteis gave Alto Neuroscience a target price of US$33.00.
On March 18, 2026, Patric Trucchio of H.C. Wainwright & Co. gave Alto a 'Buy' rating. Upon seeing Alto's 2025 financial reports, Trucchio wrote, "We updated our model with the financials from the 2025 10-K filing, added the raise, and fine-tuned our expense estimates. Altogether, these changes left our price target unchanged at US$50 per ALT share."
Myles Minter, John Boyle, and Jake Batchelder of William Blair released a research report on March 19, 2026, and gave Alto an 'Outperform' rating. They said, "We view Alto's ALTO-207 as intriguing given promising PAX-D clinical trial data in treatment-resistant depression (TRD) and PRIME-PAXOL indicating leading efficacy on anhedonia." They listed an updated probability-adjusted NPV fair value of US$40.35.
FactSet reported the following analyst ratings and target prices:
- On March 31, 2026, Jefferies analyst Andrew Tsai gave the company a Buy rating with a target price of US$35.
- On April 1, 2026, JonesTrading analyst Justin Walsh gave the company a Buy rating with a target price of US$44.
- On April 1, Chardan analyst Keay Nakae gave the company a Buy rating with a target price of US$30.
- On April 1, 2026, BTIG analyst Thomas Shrade gave the company a Buy rating with a target price of US$28.
- On April 1, 2026, TD Cowen analyst Ritu Baral gave the company a Buy rating with no target price.
- On April 1, an unnamed analyst gave the company an Overweight rating with a target price of US$38.
- On April 1, 2026, WedBush Laura Chico gave the company a Hold rating with a target price of US$21.
- On April 1, 2026, H.C. Wainwright & Co. Analyst Patrick Trucchio gave the company a Buy rating and a target price of US$50.
- On April 6, 2026, William Blair analyst Myles Minter gave the company a Buy rating with a target price of US$38.20.
Multiple Drugs in Development
Etkin discussed the company's intended forward direction in the April 1 press release, saying, "Alto enters this moment from a position of real strength: we have multiple clinical programs advancing, a US$275 million cash position, and ALTO-207 — which we believe is one of the most compelling and independently validated mechanisms in psychiatry — on track to imminently enter a Phase 2b trial.
Streetwise Ownership Overview*Our focus remains squarely on executing for patients and shareholders across our pipeline."
Alto believes it is poised to bring ALTO-207 into a Phase 3 trial after a 2025 FDA meeting. The company hopes to also complete an NDA submission for the drug. Another drug, ALTO-300, meant to treat major depressive disorder, is set to begin Phase 2b trials in mid-2026.
Ownership & Share Structure1
Alto Neuroscience Inc. has a market cap of US$719.73 million, with 31.95 million shares outstanding.
The company has a 52-week range of US$1.64-US$25.17.
Management and Insiders own 6.44% of shares, while Institutions own 65.69%.
The remaining 27.97% of shares are Retail.
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- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Alto Neuroscience Inc.
- Cori Fisher wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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1. Ownership and Share Structure Information
The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.
