The CogState share price is going ballistic today, up 44% in late afternoon trading. That puts the year-to-date gains at 207%!
The post CogState (ASX:CGS) share price up 44% today and a mind-blowing 207% in 2020 appeared first on The Motley Fool Australia. –
The CogState Limited (ASX: CGS) share price is going ballistic today, up 44% at the time of writing.
This will come as more good news to longer-term shareholders, who’ve seen the share price rocket 207% since the closing bell on 31 December last year.
By comparison the All Ordinaries Index (ASX: XAO) is up just under 3% over that same time.
What does CogState do?
Founded in 1999, CogState is a neuroscience technology company. The company provides technology and services to measure cognition and optimise the assessment of brain health to aid in new medicine development and provide earlier clinical insights. Its operating segments include clinical trials, healthcare, and research.
CogState shares first listed on the ASX in 2004. At the current share price, CogState has a market cap of approximately $141 million.
Why has the CogState share price been charging higher?
CogState finished last year trading at 39 cents per share. And it hasn’t been a straight uphill run to the current $1.20 per share.
Like most every ASX share, CogState didn’t escape the ravages of the COVID-19 driven market panic earlier this year. From 10 January through to 23 March, the CogState share price plunged 47%. If you were savvy or lucky enough to buy shares at that low, you’d be sitting on a gain of 313% today, far outpacing the 53% gains posted by the broader All Ords.
CogState shares received a huge lift in late July after the company released its quarterly cash flow statement and business update. That revealed a new record high in sales contracts that made 2020 its most successful financial year to date.
Share largely continued to trend higher from late July until receiving another turbo boost towards the end of October. That boost came on the back of the company announcing an agreement with Japanese pharmaceutical firm, Eisai. In exchange for the right to exclusively distribute CogState’s digital cognitive assessment technologies, Eisai agreed to an upfront payment of US$15 million as well as paying CogState a royalty on sales.
That gives us some background to CogState’s explosive share price growth in 2020.
As for the 44% intraday share price gain today? It appears to be happening on no new market news.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.