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Cognition Therapeutics stock rated Buy, target held amid CT1812 data

EditorAhmed Abdulazez Abdulkadir
Published 04-11-2024, 08:48 pm
CGTX
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On Monday, H.C. Wainwright reaffirmed its Buy rating and $5.00 price target on shares of Cognition Therapeutics (NASDAQ:CGTX). The firm's confidence in the stock follows the presentation of positive study results for the company's Alzheimer's treatment at a recent medical conference.

Last week, Cognition Therapeutics announced the presentation of two posters at the CTAD conference in Madrid, Spain. The posters detailed findings from the Phase 2 SHINE study of CT1812, a drug developed for individuals with mild-to-moderate Alzheimer's disease. Notably, the study revealed a significant slowing of cognitive decline in patients treated with CT1812.

According to the data, participants who received CT1812 and had lower baseline levels of plasma p-tau217 experienced a 95% slowdown in cognitive decline based on the ADAS-Cog 11 measure. Additionally, on the MMSE scale, these patients showed a 108% slowing of cognitive decline. In contrast, patients who received a placebo exhibited continued cognitive deterioration. The biomarker p-tau217 is recognized for its high accuracy in distinguishing Alzheimer's disease from other neurodegenerative disorders.

The positive outcomes from the SHINE study underscore the potential of CT1812 for a specific subset of Alzheimer's patients. According to Anthony Caggiano, M.D., Ph.D., Cognition's Chief Medical Officer, these results are expected to aid in the optimization of trial designs for the drug's pivotal development stages.

H.C. Wainwright's reiterated rating and price target reflect the firm's optimistic outlook on Cognition Therapeutics' progress and potential within the Alzheimer's treatment landscape. The 12-month target remains set at $5.00, indicating the firm's continued confidence in the company's stock performance.

In other recent news, Cognition Therapeutics has reported substantial developments in its Alzheimer's research. The biopharmaceutical company's Phase 2 SHINE study of the investigational drug CT1812 revealed a significant slowing of cognitive decline in Alzheimer's patients with lower plasma p-tau217 levels. The study, supported by the National Institute on Aging of the National Institutes of Health, also indicated a favorable safety profile for CT1812.

In addition, Cognition Therapeutics published a study in The Journal of Prevention of Alzheimer's Disease, demonstrating potential benefits of CT1812 in improving brain wave patterns and connectivity in Alzheimer's patients. The SEQUEL study, involving 16 adults, showed that CT1812 could be normalizing brain function in these patients.

Furthermore, during its second quarter 2024 earnings call, Cognition Therapeutics reported a net loss of $7 million, with an increase in research and development expenses. However, the company holds $28.5 million in cash and cash equivalents, sufficient to fund operations until the second quarter of 2025. As part of its future plans, Cognition Therapeutics is evaluating options to extend its cash runway and support later-stage trials.

InvestingPro Insights

Recent data from InvestingPro sheds additional light on Cognition Therapeutics' (NASDAQ:CGTX) financial position and market performance. Despite the positive study results and H.C. Wainwright's optimistic outlook, the company faces some financial challenges. InvestingPro Tips reveal that Cognition Therapeutics is quickly burning through cash and is not expected to be profitable this year. This aligns with the company's focus on research and development in the competitive Alzheimer's treatment space.

However, it's worth noting that Cognition Therapeutics holds more cash than debt on its balance sheet, which could provide some financial flexibility as it advances its clinical programs. The company's market capitalization stands at $18.9 million, reflecting its current valuation in light of recent developments.

Investors should be aware that the stock has experienced significant volatility, with a 75.6% decline over the past six months. This volatility underscores the risks associated with early-stage biopharmaceutical companies. For those considering an investment in CGTX, InvestingPro offers 11 additional tips to help inform decision-making in this dynamic sector.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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