Cogstate investors ride the wave of Alzheimers hope again

Nick Sundich Nick Sundich, September 28, 2022

Cogstate (ASX:CGS) shares are on the move this morning despite having no announcement. This company is one of the few ASX companies battling Alzheimers and it’s not the first time it’s riding the wave of good news for patients from other companies. 

 

No time to do stock research, but you still want to invest?
 
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

 

Hope for Cogstate and its partner Eisai

The harsh reality is that Alzheimers has been a difficult disease to fight. So, while for many other biotechs, news of another company’s treatment being approved or clinical trial being successful might be a bad thing (a sign that it is losing the race), it is good news for Cogstate.

This is especially true because this company is one of Cogstate’s partners, the Japanese drugmaker Eisai. Cogstate has digital cognitive assessment technologies that Eisai has exclusive rights to develop and distribute. 

This morning, Eisai revealed that a drug called lecanemab showed positive results in a Phase III clinical trial of nearly 1,800 patients, slowing cognitive decline by 27% after 18 months. There are plans to submit the data to the FDA for approval by March next year. 

 

Shares surge

Cogstate shares rose by as much as 60% this morning even though the broader market was only slightly higher.

 

Cogstate (ASX:CGS) share price chart (Graph: TradingView)

 

This is not the first time CGS shares have grown due to developments at Eisai. In June 2021, the shares gained after the FDA approved an anti-Alzheimers drug called Aduhelm that was made by Biogen, which is partnered with Eisai.

 

Will Cogstate ultimately benefit?

Last June CGS commented on Aduhelm’s approval, saying it expected digital cognitive assessments would play an important role in the development of drugs. It has not commented on this morning’s development as at 11am (AEST), but this is bigger because it relates to a partner’s treatment rather than a partner’s partner treatment. 

But it is important to note too that results of the study have not been peer reviewed and that the process of regulatory approval will be difficult in and of itself. However, this morning’s results are good news for sufferers of Alzheimers and for Cogstate shareholders. 

 

No time to do stock research, but you still want to invest?
 
Stocks Down Under Concierge gives you timely BUY and SELL alerts on ASX-listed stocks!

 

GET A 3-MONTH FREE TRIAL TO CONCIERGE TODAY

 

No credit card needed and the trial expires automatically.

 

 

Blog Categories

Recent Posts

Toubani Resources

Toubani Resources (ASX:TRE) gets ready for the big time in Mali

Toubani Resources (ASX:TRE) is another aspiring gold producer. What’s not to love about an aspiring gold producer right now? Its…

Capricorn Metals

Capricorn Metals (ASX:CMM): Its sequel gold mine will be even better than the original

Capricorn Metals (ASX:CMM) is one of several gold miners on the ASX that has slid under the radar of many…

Price to Book

Here’s why the Price to Book (P/B) multiple is so important to know if you own shares in the Big 4 Banks

If you own shares ASX Bank stocks (especially the big Four), you need to know about the P/B multiple (Price…