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Cognition Therapeutics, Inc. (CGTX)
:CGTX
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Cognition Therapeutics
(NASDAQ:CGTX)
35Underperform
Positive Factors
Clinical Trials
The strength of cognitive endpoints in multiple measures, such as ADAS-Cog-11 and MMSE, demonstrates the potential impact of CT1812 on improving cognitive function in patients.
Market Potential
Dementia with Lewy bodies constitutes a large market niche, classified as the third-commonest neurological condition after Alzheimer's disease and Parkinson's disease.
Negative Factors
Financial Performance
The company recorded a net loss of $0.25 per share, substantively wider than our forecast of a net loss of only $0.16 per share; this was mainly driven by higher-than-anticipated R&D spending.
Risks
Risks include negative clinical data readouts, inability to advance CT1812 into pivotal trials in a timely manner, failure to generate favorable top-line data from pivotal trials, inability to secure regulatory approval of CT1812, poorer-than-expected commercial performance, possible partnership risks, and medium-term dilution risk.
Cognition Therapeutics (CGTX) vs. S&P 500 (SPY)
Market Cap
$23.13M
Dividend YieldN/A
Average Volume (3M)624.20K
Price to Earnings (P/E)―
Beta (1Y)1.84
Revenue GrowthN/A
EPS Growth-0.38%
CountryUS
Employees25
SectorHealthcare
Sector Strength72
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.86
Shares Outstanding61,972,946
10 Day Avg. Volume561,536
30 Day Avg. Volume624,202
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
Price to Cash Flow (P/CF)-0.70
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.50Price Target Upside1386.49% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Cognition Therapeutics Business Overview & Revenue Model
Company DescriptionCognition Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of small molecule therapeutics targeting age-related degenerative diseases and disorders of the central nervous system and retina. Its lead product candidate is CT1812, a sigma-2 receptor antagonist, which is in Phase II clinical trial for the treatment of mild-to-moderate Alzheimer's disease, as well as has completed Phase I clinical trial to treat early-stage Alzheimer's disease; in Phase II clinical trial for the treatment of dementia with Lewy bodies (DLB); and in preclinical trial to treat dry age-related macular degeneration (AMD). The company is also developing CT2168 for the treatment of synucleinopathies, which include DLB and Parkinson's disease; and CT2074 to treat dry AMD. Cognition Therapeutics, Inc. was incorporated in 2007 and is headquartered in Purchase, New York.
How the Company Makes MoneyCognition Therapeutics makes money primarily through the development and eventual commercialization of its pharmaceutical products. The company generates revenue by advancing its drug candidates through clinical trials, aiming for successful regulatory approval, which can lead to product sales, licensing agreements, or partnerships with larger pharmaceutical companies. These collaborations can result in milestone payments, royalties, and upfront fees. Additionally, the company may receive government grants or public funding to support its research and development efforts in targeting Alzheimer's and other neurodegenerative diseases.
Cognition Therapeutics Financial Statement Overview
Summary
Cognition Therapeutics is facing significant financial challenges, with no revenue generation and increasing operational losses. The balance sheet reflects a precarious financial position with past negative equity and ongoing liabilities. Cash flow analysis indicates critical cash management issues, with persistent negative free cash flow. Overall, the company needs strategic financial restructuring and revenue generation to stabilize its financial health.Income Statement
Cognition Therapeutics has shown persistent negative profitability with no revenue reported over the years. The EBIT and EBITDA margins are negative, indicating operational challenges. The net income has also been negative throughout, with increasing losses, which presents concerns regarding the company's profitability trajectory.10
Very Negative
Balance Sheet
The balance sheet shows a decreasing equity base and increasing liabilities, leading to concerns about financial stability. The company's debt-to-equity ratio is not applicable due to negative equity in past years, but the current positive equity is a slight improvement. However, the company's reliance on debt financing remains a potential risk.25
Negative
Cash Flow
The cash flow statement reveals consistent negative free cash flow, indicating operational cash burn. While there is some financing inflow, the operating cash flow to net income ratio is negative, further highlighting cash flow challenges. The growth in free cash flow is not visible, suggesting ongoing cash management issues.30
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Gross Profit |
| 0.00 | -252.00K | -235.00K | -93.00K | -98.00K | EBIT |
| -53.97M | -50.72M | -43.55M | -28.60M | -17.41M | EBITDA |
| -53.97M | -25.51M | -21.13M | -13.38M | -5.99M | Net Income Common Stockholders |
| -33.97M | -25.79M | 757.00K | -10.29M | -10.07M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 25.01M | 29.92M | 41.56M | 54.72M | 5.19M | Total Assets |
| 30.23M | 35.16M | 50.42M | 59.14M | 7.12M | Total Debt |
| 535.00K | 1.24M | 1.48M | 0.00 | 12.85M | Net Debt |
| -24.47M | -28.68M | -40.08M | -54.72M | 7.66M | Total Liabilities |
| 11.48M | 10.69M | 10.18M | 7.86M | 75.30M | Stockholders Equity |
| 18.75M | 24.47M | 40.25M | 51.27M | -68.18M |
| Cash Flow | Free Cash Flow | |||
| -28.47M | -16.16M | -18.70M | -3.66M | -3.44M | Operating Cash Flow |
| -28.47M | -16.02M | -18.53M | -3.63M | -3.43M | Investing Cash Flow |
| -4.00K | -147.00K | -171.00K | -27.00K | -10.00K | Financing Cash Flow |
| 23.57M | 4.52M | 5.55M | 53.20M | 5.76M |
Cognition Therapeutics Technical Analysis
Negative
0.37
Price Trends
0.46
Negative
0.54
Negative
0.68
Negative
Market Momentum
-0.03
Negative
42.59
Neutral
64.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CGTX, the sentiment is Negative. The current price of 0.37 is below the 20-day moving average (MA) of 0.39, below the 50-day MA of 0.46, and below the 200-day MA of 0.68, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 64.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CGTX.
Cognition Therapeutics Risk Analysis
Cognition Therapeutics disclosed 85 risk factors in its most recent earnings report. Cognition Therapeutics reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Cognition Therapeutics Peers Comparison
Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
50 Neutral | $5.51B | 2.95 | -43.70% | 2.78% | 16.94% | 3.59% | |
48 Neutral | $21.09M | ― | -111.19% | ― | 237.38% | 60.32% | |
38 Underperform | $24.55M | ― | -3159.09% | ― | ― | 68.75% | |
35 Underperform | $23.13M | ― | -157.19% | ― | ― | -0.38% | |
32 Underperform | $21.87M | ― | -91.76% | ― | ― | 57.93% | |
28 Underperform | $25.43M | ― | -2880.11% | ― | ― | 24.35% |
* Healthcare Sector Average
Performance Comparison
CGTX
Cognition Therapeutics
0.37
-1.47
-79.89%
LEXX
Lexaria Bioscience
1.38
-0.82
-37.27%
CMMB
Chemomab Therapeutics
1.12
0.44
64.71%
ANVS
Annovis Bio
1.22
-8.84
-87.87%
LGVN
Longeveron
1.46
-0.46
-23.96%
NRSN
Neurosense Therapeutics Ltd.
1.03
-0.39
-27.46%
Cognition Therapeutics Earnings Call Summary
Earnings Call Date: Mar 20, 2025 | % Change Since: -17.78% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant progress in clinical efficacy signals and strategic cost management, extending the cash runway. However, challenges remain with increased net losses, NASDAQ compliance issues, and uncertain funding partnerships. The sentiment is balanced by advancements in manufacturing and patent filings.Highlights
Strong Efficacy Signals for Zervimesine
The company reported strong efficacy signals from two studies involving Alzheimer's disease and dementia with Lewy bodies (DLB), indicating potential value for patients and investors.
Cash Runway Extension
The strategic decision to conclude the Phase II dry AMD study is projected to result in cost savings that extend the company's cash runway into the fourth quarter of 2025.
Provisional Patent Applications Filed
Cognition Therapeutics has filed provisional patent applications for a novel chemical process developed for the manufacture of zervimesine, supporting future clinical studies and potential commercial manufacturing.
Progress in Manufacturing Capabilities
The company is working with a domestic contract manufacturing organization capable of producing commercial quantities of zervimesine, positioning them for potential future market demands.
Lowlights
Net Loss Increase
The company reported a net loss of $34 million for the year ended December 31, 2024, compared to a net loss of $25.8 million in 2023, despite a decrease in general and administrative expenses.
NASDAQ Compliance Challenge
The company has been granted a six-month grace period to regain compliance with NASDAQ's minimum bid requirement, needing the stock to close above $1 for ten consecutive days before September 8, 2025.
Uncertain Partnership and Funding
Despite ongoing discussions, there is no confirmed partnership or assurance of non-dilutive funding for the development and registration program, which remains a critical need for advancing trials.
Company Guidance
During the Cognition Therapeutics Fourth Quarter and Full Year 2024 Earnings Call, the company provided guidance on advancing their lead candidate, zervimesine (CT1812), into registrational trials for Alzheimer's disease and dementia with Lewy bodies (DLB). The company plans to submit final study documents to the FDA and request end of Phase II meetings for both indications. Their strategic decision to conclude the Phase II dry AMD study was made to focus resources on Alzheimer's and DLB programs, extending their cash runway into Q4 2025. Cognition reported a net loss of $34 million for 2024 and utilized an ATM facility to raise $12.8 million. They hold approximately $25 million in cash and $50 million in obligated grant funds. The company is also working on securing non-dilutive funding and is confident in regaining NASDAQ compliance within the allotted grace period.Cognition Therapeutics Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
Cognition Therapeutics Shows Promising Phase 2 Study Results
Positive
Jan 13, 2025
Cognition Therapeutics announced promising results from their Phase 2 SHIMMER study, which highlighted the efficacy and safety of their lead product, zervimesine, in treating dementia with Lewy bodies (DLB). The study showed strong responses across behavioral, functional, cognitive, and movement measures, positioning zervimesine as a potential first-to-market treatment for DLB, further supported by robust intellectual property and a favorable safety profile.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.