On Wednesday, H.C. Wainwright adjusted its price target for shares of Cognition Therapeutics (NASDAQ:CGTX), a company specializing in Alzheimer's disease treatments. The firm lowered the target to $7.00 from the previous $10.00, while reiterating a Buy rating on the stock.
Earlier this week, Cognition Therapeutics announced results from its Phase 2 "SHINE" study of CT1812, a treatment for Alzheimer's disease. The study revealed that participants who received CT1812 for six months exhibited a consistent trend towards cognitive improvement compared to those given a placebo.
This was measured across various cognitive assessments, including ADAS-Cog11, ADAS-Cog13, cognitive composite, and Mini Mental State Exam (MMSE). Moreover, there were indications of functional improvements.
These findings were presented at the Alzheimer’s Association’s International Conference on July 29, 2024, in Philadelphia, PA. The SHINE study involved 153 adults with mild-to-moderate Alzheimer's disease, randomly assigned to receive either 100mg or 300mg of CT1812 or a placebo daily. At Day 98, halfway through the study, statistical significance was observed in the ADAS-Cog11 and MMSE endpoints.
By Day 182, participants in the placebo group had worsened by approximately 2.70 points on the ADAS-Cog11 scale, while those treated with CT1812 showed an average decline of only 1.66 points, indicating a 39% slower rate of decline with the treatment.
Still, CT1812 did not reach statistical significance for the first of the secondary efficacy endpoints when comparing the combined 100mg and 300mg dose groups to the placebo.
The revised stock price target reflects an increase in the discount rate to 15% from the previous 14% and a slight increase in the estimated probability of CT1812's approval for mild Alzheimer's disease to 35% from 30%. Despite the adjustment in the price target, H.C. Wainwright's stance on the stock remains positive.
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