Cognition Therapeutics Q1 2024 Financial Results and Business Update

Cognition Therapeutics, Inc., a clinical-stage company listed on Nasdaq under the ticker CGTX, focuses on developing treatments for neurodegenerative disorders. The company recently disclosed its first-quarter financial results for the period ending March 31, 2024, and provided several key business updates.

During the early months of 2024, Cognition Therapeutics successfully completed the enrollment of 130 participants for its Phase 2 SHIMMER study, which targets mild-to-moderate dementia with Lewy bodies (DLB). This milestone surpasses the company's initial target for participant enrollment. The company also indicated that it is gearing up to analyze the topline results from its Phase 2 SHINE study, which concentrates on mild-to-moderate Alzheimer's disease. These results are anticipated to be announced by mid-2024, with further details expected to be shared at the Alzheimer's Association International Conference later in the year.

Among its business highlights, Cognition Therapeutics reported a successful follow-on public offering of common stock, which resulted in net proceeds of $11.9 million. Additionally, the company published a manuscript in Acta Neuropathologica, detailing the proximity of the sigma-2 (σ-2) receptor to cellular prion protein and Aβ oligomers in Alzheimer's brain synapses. Moreover, the company presented proteomics analyses from SPARC and SEQUEL participants at the AD/PD 2024 Alzheimer's & Parkinson's Diseases Conference, indicating ongoing progress in their research endeavors.

Cognition Therapeutics continues to advance its Phase 2 START study of CT1812 for early Alzheimer's disease and the Phase 2 MAGNIFY study for geographic atrophy secondary to dry age-related macular degeneration. These efforts underscore the company’s commitment to addressing various neurodegenerative conditions.

From a financial perspective, as of March 31, 2024, Cognition Therapeutics reported cash and cash equivalents amounting to approximately $34.7 million, alongside total remaining grant funds from the National Institute on Aging (NIA) of $62.3 million. The company estimates that its current financial resources are sufficient to support operations and capital expenditures through the second quarter of 2025.

The first quarter of 2024 saw an increase in research and development expenses, which amounted to $10.6 million, up from $5.4 million in the same period in 2023. This rise is primarily attributed to the heightened costs associated with advancing clinical programs, including activities related to Phase 2 trials, personnel, and manufacturing. General and administrative expenses remained steady at $3.5 million for both the first quarter of 2023 and 2024.

Net loss for the quarter ended March 31, 2024, was $9.2 million, translating to a loss of $0.27 per basic and diluted share. This compares to a net loss of $6.2 million, or $0.21 per basic and diluted share, for the comparable period in the previous year.

Cognition Therapeutics is dedicated to the discovery and development of innovative small molecule therapeutics aimed at treating age-related degenerative disorders of the central nervous system and retina. Their lead candidate, CT1812, is currently under investigation in clinical programs for Alzheimer’s disease, dementia with Lewy bodies, and dry age-related macular degeneration. The company believes that targeting the σ-2 receptor with CT1812 represents a unique mechanism distinct from other current approaches in the treatment of degenerative diseases.