CogState (ASX:CGS) share price crashes 20% on quarterly update

CogState shares tanked today despite the company reporting record-breaking results.

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A man looks stunned as a cloud explodes from his head representing the CogState share price crashing today in

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Key points

  • The CogState share price fell as low as $1.84 today — 20% down on yesterday’s close
  • The neuroscience technology company released a quarterly update today
  • Clinical sale contracts have increased by 141%, hitting a new record

The CogState Limited (ASX: CGS) share price flatlined today after the company released a business and investor update this morning.

At market close, the CogState share price was down 15.95% to $1.95. The share price bounced back in late afternoon trade after declining to an intraday low of $1.84.

Whilst CogState reported record figures for contracts and revenue, its shares continued the bleeding today as they have all month. The CogState share price began 2022 at $2.55 on the first day of ASX trading on 4 January. That’s a 23% dip to date.

So what exactly did CogState report? Let’s take a closer look.

CogState investors unenthused by results

CogState aims to provide tools to measure brain health and cognition in order to assist in research and remedies.

Today’s announcement reveals just a small number of business financials, with a more detailed report set to be released on 24 February.

CogState’s business update revealed:

  • Revenue for 2Q22 up 40% at $10.8 million against its prior corresponding period (PCP)
  • Revenue for 1H22 up 67% at $23.1 million compared to PCP
  • $24.6 million in net cash as of 31 December

Record figures for CogState

In its investor report, CogState revealed a number of records hit during the quarter, including:

  • A 141% increase in executed clinical sale contracts amounting to $54.5 million
  • A 78% increase in contracted future revenue at $132.9 million
  • A 67% increase in group revenue at $23.1 million

The company said Alzheimer’s trials have continued to boost its clinical sales contracts. In 1H22, the disease accounted for 90% of CogState sales contracts.

What else is news?

Just recently, CogState announced that its brain assessment tool, CogMate, is to be marketed in Taiwan and Hong Kong through its Taiwanese subsidiary, Eisai Taiwan Inc.

CogMate is a multilingual tool that measures cognitive performance. It can be used with smartphones and other smart devices.

CogState hopes the product will assist in the “self assessment and prevention” of diseases such as dementia, with ageing populations in mind.

Exposure to other countries, including Singapore, is on the horizon.

CogState share price snapshot

Over the past 12 months, the CogState share price has leapt 75%.

There was a 50% jump in June after the company announced its Alzheimer’s therapeutic had received accelerated approval based on its clinical trials. At that time, the CogState share price was $1.40. It also saw a sharp 8% jump in September to $1.87.

The company has a market capitalisation of just over $402 million and a price-to-earnings ratio (P/E) of 55.25.

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