The Cogstate Limited (ASX: CGS) share price is flying 4.53% high in trade today.
Shares in the biotech company have received a boost after releasing a business update earlier today.
Here’s what the company announced and why investors are jumping for shares in Cogstate.
Cogstate shares rise on business update
Earlier today, Cogstate released a business update and cash-flow statement for the quarter ending 30 June 2021.
Cogstate highlighted a record revenue result for FY21 of $32.7 million, a 44% increase from the prior corresponding period (pcp).
For the fourth quarter, the company recorded total revenue of $10 million, up 30% on pcp and 14% higher than the prior quarter.
In its investor briefing, Cogstate highlighted that revenue from clinical trials was the main driver for the quarter and financial year.
Clinical Trials revenue in the fourth quarter was $8.8 million, up 25% on pcp. Cogstate noted a substantial increase in new clinical trial sales contracts and an increased level of trial activity through the period.
Cogstate also highlighted a strong balance sheet, with $22.4 million net cash at 30 June 2021.
The company also cited its US$2.44 million loan from Citibank under the Paycheck Protection Program (PPP).
Cogstate also provided earnings guidance for the full-year. The company expects to record a profit before tax in a range of $5.2 million to $5.7 million. This figure includes the gain related to the PPP loan forgiveness.
Profit before tax from ordinary operations, excluding the PPP loan forgiveness, is expected to be in the range of $2.8 – $3.3 million.
Cogstate expects to release audited financial reports on Wednesday 25 August 2021.
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.
In early June, shares in Cogstate received a boost after the U.S. Food and Drug Administration (FDA) has granted Accelerated Approval for its aducanumab treatment targeting Alzheimer’s disease.
The Cogstate share price has surged more than 38% since the start of the year.
At the time of writing, the Cogsate share price is trading more than 4.5% higher for the day at around $1.50. Shares in the biotech company were up more than 5% earlier, having hit an intra-day high of $1.52.