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On Tuesday, H.C. Wainwright adjusted its price target for Cognition Therapeutics (NASDAQ:CGTX) shares, bringing it down to $3 from the previous $5 while maintaining a Buy rating on the stock. With shares currently trading at $0.30, near their 52-week low of $0.28, and down over 88% in the past year according to InvestingPro data, the firm’s analyst highlighted the clinical potential of the company’s lead drug candidate, zervimesine, despite a strategic shift in its development.
Cognition Therapeutics recently shared top-line results from its Phase 2 COG2201 MAGNIFY trial, which evaluated zervimesine in adults with geographic atrophy (GA) secondary to dry age-related macular degeneration (dry AMD (NASDAQ:AMD)). The study found that zervimesine-treated participants experienced a 28.6% slower growth of GA lesions on average, and at 18 months, their lesions were 28.2% smaller compared to those treated with a placebo.
Despite these promising results, Cognition has decided not to proceed with zervimesine’s development for this particular condition at present, citing resource conservation. The MAGNIFY study was concluded early with about 100 participants enrolled out of the planned 246. This decision was made to conserve resources, though the data suggests potential avenues for future exploration if capital becomes available. InvestingPro data reveals the company is quickly burning through cash, with negative EBITDA of $53.53 million in the last twelve months, though it maintains a healthy current ratio of 2.09, indicating sufficient liquidity for near-term obligations.
The analyst pointed out the significance of an effective oral treatment for GA, as current treatments for AMD require regular clinic visits for intravitreal injections. GA leads to the formation of lesions that cause blind spots in central vision, and zervimesine showed potential in reducing these lesions’ growth rate and size.
Further details on zervimesine’s impact on retinal health were presented at the Association for Research in Vision and Ophthalmology (ARVO) meeting held in Salt Lake City, UT. The adjustment of the price target to $3 from $5 by H.C. Wainwright reflects the anticipated equity dilution later this year, which is expected to extend the company’s operational runway. With a market capitalization of just $18.41 million and analyst targets ranging from $2 to $5, investors seeking deeper insights can access comprehensive financial health metrics and 11 additional ProTips through InvestingPro’s detailed research reports.
In other recent news, Cognition Therapeutics, Inc. announced positive topline results from its Phase 2 MAGNIFY trial, showing that zervimesine significantly reduced the growth of geographic atrophy lesions in patients with dry age-related macular degeneration. The trial, which included around 100 participants, demonstrated a 28.6% slower growth rate of lesions compared to a placebo. In another development, the company reported promising results from its Phase 2 SHINE study, where zervimesine showed reductions in Alzheimer’s disease biomarkers among patients with mild-to-moderate conditions. These results were presented at the AD/PD 2025 Conference, highlighting the drug’s potential impact on neuroinflammation and neurodegeneration. Meanwhile, H.C. Wainwright adjusted its price target for Cognition Therapeutics to $5 while maintaining a Buy rating, noting the company’s strategic shift to focus on Alzheimer’s and dementia with Lewy bodies programs. Brookline Capital Markets also updated its outlook, raising the price target to $7, citing significant clinical advancements and a strategic focus on progressing Phase 3 programs. Cognition Therapeutics is actively seeking partnerships and out-licensing opportunities to support its development efforts. The company plans to engage with the FDA to discuss Phase 3 clinical protocols for Alzheimer’s and dementia with Lewy bodies.
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