The CogState Limited (ASX: CGS) share price is having a sensational day.
In morning trade, the neuroscience technology company's shares were up as much as 61% to $2.26 before being halted.
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Why is the CogState share price rocketing higher?
Investors have been bidding the CogState share price higher today despite there being no news out of the company.
However, it is worth noting that its partner, Japan's Eisai, has released some very big news today.
According to NBC, the Japanese drugmaker's experimental drug for Alzheimer's disease has helped slow cognitive decline in patients in the early stages of the illness.
The company said that in a phase 3 clinical trial of lecanemab, cognitive decline was slowed by 27% after 18 months. These results were based on 1,795 patients, who were randomly assigned to receive either the drug or a placebo every two weeks over the months.
Though, it is worth noting that these results have not yet been peer-reviewed.
What does this have to do with CogState?
This could be very good news for CogState.
In August 2019, Cogstate entered into an exclusive licensing agreement with Eisai. This agreement saw Eisai market Cogstate technologies as digital cognitive assessment tools in the Japanese market.
In October 2020, the two parties then extended the agreement to the rest of the world in a US$45 million deal.
Trading halt
Investors won't have to wait long for an explanation for the rampant rise today. It appears as though the high flying CogState share price has caught the attention of the Australian stock exchange.
As a result, the company's shares have been paused pending the release of a further announcement.
