The Cogstate Limited (ASX: CGS) share price has bolted more than 23% in today's trading session.
At the time of writing, shares in Cogstate are trading at around $1.48, after hitting an intra-day high of $1.49.
Let's take a look at what could be fuelling the Cogstate share price.
What is fueling the Cogstate share price?
Despite not releasing any price-sensitive news, the Cogstate share price is bolting more than 19% higher today. Due to the lack of market moving news, today's euphoric price action can be attributed to many factors.
The last piece of news from Cogstate can be traced back to a market update released on 15 June. According to the update, Cogstate's wholly-owned US subsidiary received confirmation that federal loan funds had been fully forgiven.
In May 2020, Cogstate Inc secured a US$2.44 million loan under the United States Government Small Business Administration Payroll Protection Program (PPP). Cogstate noted that the PPP allowed companies to maintain their workforce as the pandemic disrupted business operations.
Snapshot of the Cogstate share price.
Cogstate is a neuroscience technology company that specialises in brain health assessments, with the aim of advancing the development of new medicines and clinical insights. The company's technologies allow for rapid and reliable computerised cognitive tests, which are designed to replace traditional costly and error-prone paper assessments.
Including today's price action, the Cogstate share price is flying more than 35% higher for the year. Shares in Cogstate hit an all-time high of $1.60 earlier this month following a very positive business update.
Cogstate announced that the U.S. Food and Drug Administration (FDA) had granted Eisai Co accelerated approval for aducanumab for the treatment of Alzheimer's disease.
Late last year, Cogstate announced that it had entered into an agreement with Eisai Co to grant the company rights to exclusively develop and distribute Cogstate technologies.
As a result, Cogstate noted that following the approval of aducanumab by the FDA, Eisai no longer has the right to accelerated termination of the Cogstate-Eisai agreement. Eisai is contractually obligated to minimum contractual royalty payments over commercial years 1-5 of US$10 million.
