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Highlights

  • FY24 revenue rose 7% year-on-year (YoY) to USD 43.4 million, with a 9% increase in clinical trial revenue.
  • CGS partnered with Medidata to deliver comprehensive solutions for CNS disease assessments.
  • CGS plans to increase profit in FY25, with significant clinical trial sales contracts already executed.

Cogstate Limited (ASX:CGS) is an ASX-listed neuroscience technology company engaged in optimising cognitive assessments to aid the development of new therapeutics and delivering earlier brain health insights in clinical care.

Over the past more than 20 years, CGS’ revenue has increased consistently as it has established itself as a trusted partner for biotechnology and pharmaceutical organisations. In the last three years, revenue was higher than USD 40 million every year. In the financial year 2024 (FY24), CGS’ revenue jumped 7% YoY to USD 43.4 million, with 9% YoY surge in clinical trial revenue and 9% YoY drop in healthcare revenue.

EBITDA in FY24 increased by 93% YoY to USD 9.3 million and net profit after tax jumped 53% YoY to USD 5.4 million.

Partnership with Medidata

On 30 October 2024, through an ASX announcement, the company informed about a partnership with Medidata, provider of clinical trial solutions and a brand of Dassault Systems. This collaboration will allow the parties to jointly offer a comprehensive solution for overseeing and delivering assessments in central nervous system diseases.

The parties are already marketing this joint offering actively, and the first sales contract with a bio-phrama client is expected to be concluded in the coming days.

Furthermore, CGS has established several partnerships with electronic clinical outcome assessment providers with each providing different levels of capabilities and integration.

Outlook

In FY25, the company intends to boost its profit and revenue through the year. Notably, FY25 has begun on a positive note, with USD 9.3 million worth clinical trials sales contracts executed, contributing USD 29.6 million in contracts by 21 August 2024.

In FY24, sales contract for Alzheimer’s disease reported a fall of USD 13 million, however it is expected to grow in FY25 on the back of executed contract and active customer engagement for upcoming campaigns.

The contract value is expected to improve with the consolidation of several ongoing Phase 3 trails into a single larger trial, allowing the company to generate revenue effectively.    

Share performance of CGS

CGS shares closed at AUD 1.0 apiece on 30 October 2024. In the past one year, CGS’ share price has dropped by almost 31.97%, while in the last three months, it has declined by 13.79%.

52-week high of CGS is AUD 1.585, recorded on 8 November 2023, and 52-week low is AUD 0.795, recorded on 5 September 2024.

CGS Daily Technical Chart, Source: REFINITIV

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 30 October 2024. The reference data in this report has been partly sourced from REFINITIV.