Cognition Therapeutics develops new drug manufacturing process

Published 20/02/2025, 13:38
Updated 20/02/2025, 13:40
Cognition Therapeutics develops new drug manufacturing process

PURCHASE, N.Y. - Cognition Therapeutics, Inc. (NASDAQ: CGTX), a biopharmaceutical company focused on neurodegenerative disorders with a current market capitalization of $24.5 million, has developed a novel chemical process for producing zervimesine (CT1812), which is currently under investigation for the treatment of central nervous system diseases like Alzheimer’s and dementia with Lewy bodies. According to InvestingPro data, the company maintains a healthy balance sheet with more cash than debt, though it’s currently experiencing rapid cash burn. The American Chemical Society journal Organic Process Research & Development recently published a manuscript detailing this process.

The new process, which incorporates high throughput screening and light-induced continuous flow processing, aims to more efficiently and safely synthesize zervimesine. The company has also discovered a new polymorphic form of the drug that offers improved stability at room temperature, potentially extending its shelf life and providing other pharmaceutical benefits.

Zervimesine is an oral, once-daily pill designed to combat the toxic proteins that are known to damage neurons in patients with Alzheimer’s disease and dementia with Lewy bodies. By potentially interrupting these toxic effects, zervimesine could slow disease progression and improve patient outcomes.

Cognition Therapeutics has filed provisional patent applications for the new manufacturing process and the preferred polymorphic form of zervimesine. The company anticipates that this process will not only supply materials for future clinical studies but also support commercial manufacturing needs if the drug receives approval. With analysts setting price targets between $2 and $11, significantly above the current trading price of $0.63, market expectations appear optimistic despite current challenges. InvestingPro subscribers can access detailed analysis and 8 additional key insights about CGTX’s financial health and market position.

The START study (NCT05531656), a clinical trial for zervimesine in early Alzheimer’s disease, is currently ongoing. Cognition Therapeutics believes that zervimesine, through its interaction with the sigma-2 receptor, can regulate pathways impaired in neurodegenerative diseases, offering a distinct approach from other treatments.

The company’s efforts are part of a broader mission to develop small molecule therapeutics targeting age-related degenerative disorders of the CNS. Despite the forward-looking nature of the press release, the company acknowledges the inherent risks and uncertainties of drug development and the competitive landscape of the pharmaceutical industry. Financial metrics reflect these challenges, with a current ratio of 2.11 indicating strong short-term liquidity, though the company remains unprofitable with negative EBITDA of $58.33 million. For comprehensive analysis of CGTX and 1,400+ other stocks, including detailed Fair Value assessments and expert insights, explore InvestingPro’s extensive research reports.

This article is based on a press release statement from Cognition Therapeutics, Inc.

In other recent news, Cognition Therapeutics has announced the completion of its Phase 2 SHIMMER study for CT1812, targeting mild-to-moderate dementia with Lewy bodies (DLB). This trial involved 130 patients and aimed to evaluate the safety and tolerability of the drug over a six-month period. The company plans to release the study’s topline results in December 2024. In response to the trial’s positive outcomes, H.C. Wainwright adjusted its price target for Cognition Therapeutics, increasing it from $5.00 to $6.00 while maintaining a Buy rating. The analyst firm highlighted the promising trial results, noting an 82% reduction in the progression of neuropsychiatric symptoms. The company received significant support for the study from the National Institute on Aging, with a grant of approximately $30 million. Cognition Therapeutics is also exploring CT1812’s potential in treating other conditions, such as Alzheimer’s disease and dry age-related macular degeneration. These developments underscore the company’s ongoing efforts to address unmet medical needs in neurodegenerative disorders.

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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