Analyst Ram Selvaraju from H.C. Wainwright reiterated a Buy rating on Cognition Therapeutics and keeping the price target at $3.00.
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Ram Selvaraju has given his Buy rating due to a combination of factors, primarily centered around the promising developments in Cognition Therapeutics’ lead candidate, zervimesine. The company is on the cusp of receiving crucial regulatory feedback from the FDA, which could significantly clarify the clinical development path for zervimesine in treating Alzheimer’s disease and dementia with Lewy bodies. This feedback is expected to provide a clear value inflection point, especially if it includes favorable conditions such as a 12-month evaluation period and specific efficacy measures.
Additionally, Cognition Therapeutics is actively pursuing a Breakthrough Therapy Designation for zervimesine in dementia with Lewy bodies, which could further enhance its market potential. The ongoing Phase 2 ‘START’ study for early Alzheimer’s disease is progressing well, with over half of the enrollment completed, indicating strong momentum in their clinical trials. Financially, the company’s recent quarterly results were in line with expectations, and their cash reserves appear sufficient to support ongoing operations, reinforcing the positive outlook and the Buy rating.
According to TipRanks, Selvaraju is a 5-star analyst with an average return of 20.1% and a 51.27% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Urogen Pharma, Cognition Therapeutics, and Axsome Therapeutics.