This comes after the biotech company released a business update earlier.
The post Here’s why the Cogstate (ASX:CGS) share price is up 5% today appeared first on The Motley Fool Australia. –
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.
Should you invest $1,000 in Cosgate right now?
Before you consider Cosgate, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Cosgate wasn’t one of them.
The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of May 24th 2021
Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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.