Gold prices briefly hit record high over $3,500/oz on fiscal, tariff concerns
On Monday, H.C. Wainwright analysts adjusted their financial outlook for Cognition Therapeutics (NASDAQ:CGTX), reducing the 12-month price target to $5 from the previous $6 while maintaining a Buy rating on the shares. The stock, currently trading at $0.46, has declined 35% year-to-date and 75% over the past year. The re-evaluation follows Cognition Therapeutics’ recent announcements regarding its financial results for the fourth quarter of 2024 and the full year, as well as updates on its clinical development strategies. According to InvestingPro data, the company maintains a strong Buy consensus among analysts, with price targets ranging from $2 to $8.
The company’s lead clinical-stage candidate, zervimesine, originally known as CT1812, has shown promise in Phase 2 studies for treating mild-to-moderate Alzheimer’s disease (AD) and dementia with Lewy bodies (DLB). These findings have encouraged the company to refocus its clinical efforts for the year 2025. With a market capitalization of just $18.9 million, the company maintains a healthy balance sheet, holding more cash than debt and a current ratio of 2.65.
Cognition Therapeutics has decided to halt enrollment in its Phase 2 study for dry acute macular degeneration (AMD (NASDAQ:AMD)) to allocate more resources to the planned registrational programs for AD and DLB. This strategic shift is aimed at extending the company’s cash runway into late 2025. The firm is preparing to engage with the FDA in end-of-Phase 2 meetings to discuss the Phase 3 clinical protocols for both AD and DLB. The process for these pivotal meetings is scheduled to begin in the early second quarter of 2025. For deeper insights into CGTX’s financial health and valuation metrics, access the comprehensive Pro Research Report available exclusively on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
The FDA’s response to the company’s request for separate end-of-Phase 2 meetings for AD and DLB is expected within two weeks of receipt. The feedback from these meetings, which Cognition Therapeutics anticipates by mid-2025, will likely outline the clinical path forward for zervimesine.
In light of these developments, H.C. Wainwright reaffirms its positive stance on Cognition Therapeutics’ stock, despite the updated price target. The firm’s analysts have adjusted their expectations to account for what they predict will be an extended timeline for zervimesine to reach the market for AD and DLB treatment.
In other recent news, Cognition Therapeutics reported its fiscal year 2024 results, highlighting a net loss of $34 million, consistent with the previous year. The company’s research and development expenses were $41.7 million, an increase from $37.2 million in 2023, while general and administrative expenses decreased to $12.3 million from $13.5 million. Despite these financial results, Cognition Therapeutics remains focused on advancing its Alzheimer’s and Dementia with Lewy Bodies (DLB) programs, supported by positive clinical data and key opinion leader feedback. The company has raised $12.8 million through an at-the-market (ATM) facility, extending its cash runway into the fourth quarter of 2025. Brookline Capital Markets reaffirmed its Buy rating on Cognition Therapeutics, raising the price target to $7.00, acknowledging the company’s clinical advancements and strategic focus. The firm noted the company’s efforts to secure partnerships and out-licensing opportunities to further its development programs. Cognition Therapeutics is preparing for potential Phase III trials and remains confident about regaining NASDAQ compliance by September 2025. The company is actively seeking non-dilutive funding and exploring strategic partnerships to support its ongoing clinical development.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.