Alto Neuroscience shares surge to record $32.74

Alto Neuroscience Inc. shares surged to a record $32.74 on Thursday, extending gains in a broader biotechnology sector rally.

The California-based biotech company, which focuses on precision psychiatry treatments, saw its stock rise 8% during intraday trading. The milestone price surpasses Alto Neuroscience’s previous all-time high of $29.50, set in late March.

The move reflects increased investor appetite for biotech stocks, particularly those developing novel therapies for neurological and psychiatric conditions. Alto Neuroscience’s pipeline includes candidates targeting major depressive disorder and schizophrenia, both of which have seen heightened research activity in recent years.

Trading volume spiked to roughly 1.2 million shares, well above the 30-day average of 650,000, indicating strong market interest. The company has not released any new corporate announcements in the past week that would directly explain the price surge.

Analysts attributed the rally to broader sector momentum, as well as positive sentiment around early-stage biotech valuations. The Nasdaq Biotechnology Index has gained nearly 12% over the past month, outpacing the S&P 500’s 3% rise during the same period.

Alto Neuroscience, which went public in 2021 via a $150 million IPO, has yet to turn a profit. The company reported a net loss of $58 million for the fiscal year 2023, though revenue grew to $12 million from $5 million in 2022.

Investors will be watching closely for updates on clinical trial progress, particularly for the company’s lead drug candidate, ALTO-100, which is in Phase 2 trials for treatment-resistant depression.