zervimesine shows promise in dry AMD trial

PURCHASE, N.Y. - Cognition Therapeutics, Inc. (NASDAQ: CGTX), a small-cap biopharmaceutical company with a market capitalization of $22 million, announced positive topline results from its Phase 2 MAGNIFY trial, evaluating the efficacy of zervimesine in treating geographic atrophy (GA) secondary to dry age-related macular degeneration (dry AMD). The study revealed a significant reduction in the growth of GA lesions among participants receiving the treatment. According to InvestingPro data, the company’s stock has seen significant volatility, declining over 80% in the past year despite maintaining a strong balance sheet with more cash than debt.

In the MAGNIFY trial, which included around 100 participants, zervimesine led to a 28.6% slower growth rate of GA lesions and a 28.2% reduction in lesion size at 18 months compared to those given a placebo. These findings suggest a potential new oral treatment option for dry AMD, which currently requires frequent clinic visits for intravitreal injections. With analysts setting price targets ranging from $2 to $8, InvestingPro subscribers can access detailed analysis of how these clinical results might impact the company’s valuation and market position.

Anthony O. Caggiano, MD, PhD, Chief Medical Officer and Head of R&D at Cognition Therapeutics, highlighted the drug’s potential across various degenerative diseases, noting its previous indications in Alzheimer’s disease and dementia with Lewy bodies. Lisa Ricciardi, the company’s President and CEO, expressed optimism about zervimesine’s ability to serve as a monotherapy or in combination with other medications, offering flexibility for physicians and accessibility for patients who may not be suitable for injectable treatments.

The MAGNIFY study was concluded early, with the company opting to focus resources on ongoing programs in Alzheimer’s and dementia with Lewy bodies (DLB). Further data from the trial, including safety and visual outcomes, are still under analysis and are expected to be presented at a medical meeting later this year.

Dry AMD is a prevalent condition affecting central vision, and as it advances to GA, it leads to the formation of lesions that cause blind spots and irreversible vision loss. Zervimesine, an investigational oral pill taken once daily, is being developed to address central nervous system diseases by potentially interrupting the toxic effects of certain proteins that damage neurons.

Cognition Therapeutics plans to continue investigating zervimesine’s efficacy and safety in its clinical programs. The company’s approach to treating neurodegenerative disorders involves targeting the sigma-2 receptor, a mechanism distinct from other treatments currently available. With an overall Financial Health Score rated as ’WEAK’ by InvestingPro, investors seeking comprehensive analysis can access detailed financial metrics, expert insights, and the complete Pro Research Report covering this emerging biotech company.

The information in this article is based on a press release statement from Cognition Therapeutics, Inc.

In other recent news, Cognition Therapeutics has reported its financial results for the fourth quarter and full year 2024, highlighting a net loss of $34 million, consistent with the previous year. The company has decided to halt enrollment in its Phase 2 study for dry acute macular degeneration to focus resources on Alzheimer’s and dementia with Lewy bodies (DLB) programs, extending its cash runway into late 2025. H.C. Wainwright analysts have adjusted their financial outlook for Cognition Therapeutics, reducing the 12-month price target to $5 from $6, while maintaining a Buy rating, noting the extended timeline for zervimesine’s market reach. Meanwhile, Brookline Capital Markets has raised its price target for the company to $7 and reaffirmed a Buy rating, citing the alignment of fiscal year 2024 results with market projections and lower-than-expected research and development expenses. Cognition Therapeutics recently presented promising results from its Phase 2 SHINE study of zervimesine at the AD/PD™ 2025 Conference, showing reductions in biomarkers associated with Alzheimer’s disease. The company is preparing for potential Phase 3 trials and is actively seeking partnerships and non-dilutive funding to support its clinical programs. These developments reflect Cognition Therapeutics’ strategic focus on advancing treatments for neurodegenerative disorders while managing financial constraints.

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