What’s moving the Cogstate (ASX:CGS) share price today?

The Cogstate share price has been wobbly today after the company announced its sales for the quarter ending December 2020.
The post What’s moving the Cogstate (ASX:CGS) share price today? appeared first on The Motley Fool Australia. –

Artificial Intelligence

The Cogstate Limited (ASX: CGS) share price has been fluctuating today after the company released a business update to the ASX.

Earlier today the Cogstate share price was trading 2.33% higher but has now dipped into the red and is down by 0.47% to $1.07 per share.

About Cogstate 

Cogstate is a neuroscience technology company aiming to optimise brain health assessments. As such the company provides services to measure cognition and optimise the assessment of brain health to aid in new medicine development and provide earlier clinical insights. 

What did Cogstate announce?

This morning, ASX healthcare company Cogstate released its quarterly sales update. The company reported that its clinical trials sales contracts executed during the last quarter of 2020 amounted to US$14.3 million.

That result takes the total value of sales during the first half of FY21 to US$22.6 million, which is down from US$26.9 million the prior corresponding period. The company noted that the global pandemic has resulted in sales delays for the company.

In the healthcare segment of the business, Cogstate also announced that it has received a payment from Japanese pharmaceutical giant Eisai. The payment is part of a global license agreement, in which Eisai has agreed to pay Cogstate an upfront royalty of US$15 million to exclusively distribute its digital cognitive technologies. In addition, the agreement provides for cumulative royalties of at least US$30 million over the term of the license, unless terminated earlier.

Management commentary

The strong half year result follows the record US$46.0 million of sales contracts executed in FY20.

Cogstate CEO Brad O’Connor welcomed the news, saying:

In the context of the global pandemic and the various stay-at-home orders in place around the world, which have certainly made trial recruitment and participation more difficult than normal, the clinical trials sales result is very pleasing. This result demonstrates that the level of demand from pharmaceutical companies for Cogstate technology and services that was evident during FY20 has continued into FY21, notwithstanding the challenging external environment.

The company also noted that its recent deal signed with Eisai has not been included in the quarterly or half yearly results.

The Cogstate share price is trading 194% higher than this time last year, and on current prices the company has a market capitalisation of $182 million.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of June 30th

More reading

Motley Fool contributor Daniel Ewing 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.

The post What’s moving the Cogstate (ASX:CGS) share price today? appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!