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On Monday, H.C. Wainwright reaffirmed its Buy rating and $3.00 price target on Cognition Therapeutics (NASDAQ:CGTX), representing significant upside from the current price of $0.29. According to InvestingPro data, analyst targets range from $2 to $4, with a strong Buy consensus. The endorsement follows the company’s recent announcement of receiving an anonymous philanthropic donation aimed at significantly funding an expanded access program (EAP) for individuals with dementia with Lewy bodies (DLB). The EAP will utilize zervimesine, a drug involved in the company’s Phase 2 SHIMMER study.
Cognition Therapeutics disclosed that the EAP will provide 100mg of oral zervimesine daily for about a year to participants. The company maintains a strong financial position, with InvestingPro analysis showing more cash than debt on its balance sheet and a healthy current ratio of 2.09. Banner (NASDAQ:BANR) Sun Health Research Institute in Arizona is the first of eight sites to be activated for this program, with Dr. David Shprecher serving as the primary investigator. Dr. James Galvin, who is the director of the Comprehensive Center for Brain Health at the University of Miami Miller School of Medicine, will be the lead investigator for the EAP. Dr. Galvin also served as the study director and principal investigator on the SHIMMER study grant from the National Institute of Aging.
The EAP is initially set to accommodate around 30 individuals, offering treatment with 100mg of once-daily oral zervimesine for approximately one year. The possibility of treating additional patients will depend on the availability of funding and drug supply. Eligibility for the program extends to participants who completed the Phase 2 SHIMMER study, as well as other patients diagnosed with mild-to-moderate DLB who meet the program’s criteria.
A total of eight U.S. sites, all of which participated in the SHIMMER study, have been chosen for the EAP, with Banner Sun Health Research Institute being the first to start operations. In light of these developments, H.C. Wainwright reiterated its positive stance on Cognition Therapeutics with a maintained price target and Buy rating. For deeper insights into CGTX’s valuation and financial health, including exclusive ProTips and comprehensive analysis, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Cognition Therapeutics announced promising results from its Phase 2 MAGNIFY trial, which evaluated zervimesine in treating geographic atrophy secondary to dry age-related macular degeneration. Participants receiving zervimesine experienced a 28.6% slower growth of lesions and a 28.2% reduction in lesion size over 18 months compared to those on a placebo. Despite these results, Cognition has opted to halt further development for this condition to conserve resources, focusing instead on Alzheimer’s and dementia with Lewy bodies. In related developments, H.C. Wainwright adjusted its price target for Cognition Therapeutics to $3 from $5 while maintaining a Buy rating, reflecting anticipated equity dilution. Additionally, the company reported findings from its Phase 2 SHINE study on Alzheimer’s, showing reductions in biomarkers associated with the disease. These findings, presented at the AD/PD™ 2025 Conference, indicate potential cognitive improvements, particularly in a subgroup of patients with lower levels of the protein p-Tau217. Cognition Therapeutics plans to engage with the FDA to discuss Phase 3 clinical protocols for Alzheimer’s and dementia with Lewy bodies. The company continues to explore zervimesine’s interaction with the sigma-2 receptor, a novel approach in treating neurodegenerative diseases.
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