Cognition Therapeutics (NASDAQ:CGTX) Announces Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Cognition Therapeutics reported a quarterly loss of $0.04 per share, beating analyst expectations of a $0.07 loss by $0.03.
• The company says it has aligned with the FDA on a planned Phase III zervimesine trial for mild-to-moderate dementia with Lewy bodies (DLB), potentially starting in mid-2027. The study may require fewer than half the participants originally expected.
• Funding remains a key concern: Cognition is evaluating financing options for the DLB trial, and its current cash is expected to support operations only into Q4 2027. Separately, its 545-participant START Phase II study is fully enrolled and funded, with results expected in the second half of 2027.

Cognition Therapeutics (NASDAQ:CGTX - Get Free Report) issued its quarterly earnings data on Thursday. The company reported ($0.04) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.07) by $0.03, FiscalAI reports.

Here are the key takeaways from Cognition Therapeutics' conference call:

• Cognition says it has aligned with the FDA on a planned Phase III trial of zervimesine for mild-to-moderate DLB, with one pivotal study potentially sufficient, subject to FDA review of the completed data. The company aims to start the trial in mid-2027.
• The planned trial will use hallucinations and delusions, measured by the NPI-2, as its primary endpoint, with daily living activities as a key secondary endpoint. Management cited favorable Phase II SHIMMER results across DLB symptoms, but the Phase III study will need to confirm whether the treatment slows disease progression.
• The company is evaluating funding options for the DLB trial. Management said the revised design requires less than half the roughly 750 participants initially contemplated, but did not provide a new trial cost; current cash is expected to fund operations only into the fourth quarter of 2027.
• The 545-participant START Phase II study in mild cognitive impairment and early Alzheimer’s disease is fully enrolled and funded by the NIA, with top-line results expected in the second half of 2027. Management said baseline data have not yet been analyzed for comparison with the prior SHINE study.

Cognition Therapeutics Stock Up 8.1%

Shares of NASDAQ CGTX traded up $0.05 during mid-day trading on Friday, hitting $0.69. 282,194 shares of the company were exchanged, compared to its average volume of 605,701. The stock has a 50 day simple moving average of $0.88 and a 200-day simple moving average of $1.05. Cognition Therapeutics has a 1-year low of $0.55 and a 1-year high of $1.82. The firm has a market cap of $65.33 million, a price-to-earnings ratio of -4.58 and a beta of 1.84.

Wall Street Analyst Weigh In

CGTX has been the subject of a number of research reports. HC Wainwright reaffirmed a "buy" rating on shares of Cognition Therapeutics in a report on Monday, October 5th. Wall Street Zen lowered Cognition Therapeutics from a "hold" rating to a "sell" rating in a report on Saturday, August 15th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Cognition Therapeutics in a research report on Monday, September 21st. Three equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $3.33.

Cognition Therapeutics Company Profile

Cognition Therapeutics, Inc is a clinical-stage biotechnology company focused on developing therapies for neurodegenerative diseases. The company's research centers on the sigma-2 receptor, also known as the sigma-2 receptor complex or PGRMC1, a target believed to play a role in the cellular mechanisms associated with synaptic dysfunction and neurodegeneration.

Cognition Therapeutics' lead product candidate is CT1812, an orally administered small-molecule therapy designed to modulate the sigma-2 receptor complex.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.