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Highlights

  • Cogstate is a neuroscience company optimizing brain health assessments to develop new medicines and enable initial clinical insights in healthcare
  • In 1HFY24, CGS’ revenue grew to USD 20.2 million
  • The company intends to undertake on-market buy-back of maximum 5 million shares

Cogstate Limited (ASX: CGS) is a US-based neuroscience technology company. Founded in 1999, the company focuses on optimizing cognitive assessments to support the advancement of new therapeutics and delivering earlier brain health insights in clinical care.

In the first half of financial year 2024 (1HFY24), the company registered 3.6% YoY growth in revenue to USD 20.2 million and 220% YoY increase in EBITDA to USD 3.2 million. During the reported period, operating cash flow stood at USD 0.5 million, up by 25% over the previous corresponding period. The period saw net profit of USD 2 million, up from USD 0.1 million in 1HFY23, driven by more than 3% YoY growth in clinical trials and cost reductions.

In the first half, the company executed sales contracts worth USD 10.9 million.

Top 10 shareholders of CGS

The top 10 shareholders of CGS have nearly 61.48% shareholding in the company, while the top four have around 44.04% shareholding. The top two shareholders of CGS are Dagmar Dolby Fund and Myer (Martyn Kenneth), with the shareholding of ~15.02% and ~13.78%, respectively.

Recent business update

On 22 February 2024, the company shared an update about its on-market buy-back campaign. The ASX release highlighted that CGS intends to buy-back up to 5 million shares.

Outlook

In 2HFY24, the company expects to see improved clinical trials sales bookings and anticipates previously reported expansion in sales pipeline and sales activity.

The company expects continuous customer engagement of new clinical trials, especially Alzheimer.

Share performance of CGS

CGS shares closed 1.57% lower at AUD 1.250 apiece on 28 February 2024 with a market capitalisation of AUD 217.63 million. Shares of CGS have decreased by almost 19.87% in the last 12 months and have recorded a rise of 5.04% in the past one month.

The 52-week high of CGS is AUD 1.87, recorded on 16 June 2023, while the 52-week low is AUD 1.125, recorded on 22 February 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 28 February 2024. The reference data in this report has been partly sourced from REFINITIV.