Cognition Therapeutics shifts to Nasdaq Capital Market

Published 12/03/2025, 21:14
Cognition Therapeutics shifts to Nasdaq Capital Market

PURCHASE, N.Y. - Cognition Therapeutics, Inc. (NASDAQ:CGTX), a biopharmaceutical company focused on neurodegenerative disorders with a current market capitalization of $17 million, has been transferred to The Nasdaq Capital Market after failing to meet the minimum bid price requirement on The Nasdaq Global Market. The company’s stock, which has declined nearly 78% over the past year according to InvestingPro data, had closed below $1.00 per share for over 30 consecutive business days as of September 12, 2024, prompting Nasdaq to grant a 180-day period for compliance, ending on March 11, 2025.

On Wednesday, Nasdaq confirmed the transfer of Cognition’s listing, which will be effective from the market open on March 14, 2025. The company has been given an additional 180 days to comply with the minimum bid price requirement. To regain compliance, Cognition’s common stock must close at a minimum bid price of $1.00 per share for at least ten consecutive business days before September 8, 2025.

Cognition Therapeutics is considering various options to address the bid price deficiency. One potential measure is a reverse stock split, which would require stockholder approval and need to be implemented at least 10 business days before the compliance period deadline. InvestingPro data shows the company holds more cash than debt on its balance sheet, though it’s quickly burning through cash reserves. Analysts have set price targets ranging from $2 to $11, suggesting potential upside from current levels.

The company’s lead candidate, zervimesine (CT1812), is currently under investigation in clinical programs for dementia with Lewy bodies and Alzheimer’s disease. Cognition believes its σ-2 receptor modulator pipeline can address pathways impaired in these diseases, offering a distinct approach from existing treatments for degenerative conditions. For deeper insights into Cognition’s financial health and growth prospects, investors can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports.

The information in this article is based on a press release statement from Cognition Therapeutics, Inc. The company’s forward-looking statements, including plans to address the minimum bid price requirement and potential outcomes, are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These statements are not guarantees of future performance and are based on current conditions and projections.

In other recent news, Cognition Therapeutics, Inc. has reported preliminary positive results from a Phase 2 trial of zervimesine in treating geographic atrophy secondary to dry age-related macular degeneration. The trial showed that patients receiving zervimesine for at least six months exhibited slower lesion growth compared to those on a placebo. Additionally, the company has developed a new chemical process for producing zervimesine, which was detailed in the American Chemical Society journal. This process aims to synthesize the drug more efficiently and safely, and includes a new polymorphic form that offers improved stability. Cognition Therapeutics has filed provisional patent applications for this process and the new form of the drug. Furthermore, H.C. Wainwright recently raised its price target for Cognition Therapeutics to $6.00 from $5.00, maintaining a Buy rating. This adjustment follows positive results from the Phase 2 SHIMMER trial of CT1812, demonstrating improvements in patients with dementia with Lewy bodies. The firm assigned a 30% likelihood of approval to CT1812, with a potential market launch anticipated in 2028.

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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