Cognition Therapeutics Inc

Cognition Therapeutics, Inc. (NASDAQ: CGTX) is a clinical-stage biopharmaceutical company engaged in the discovery and development of small molecule therapeutics targeting age-related degenerative disorders of the central nervous system and retina. The Company is investigating its lead candidate, zervimesine (CT1812), in clinical programs in dementia with Lewy bodies (DLB) and Alzheimer’s disease. Its CT1812 and pipeline of sigma-2 modulators can regulate pathways that are impaired in these diseases for the treatment of degenerative diseases.

Key Business and Financial Updates:

• Strategic and Clinical Advancements: Cognition Therapeutics, Inc. (NASDAQ: CGTX), a clinical-stage biotechnology company focused on therapies for neurodegenerative disorders, reported significant progress across its clinical programs during the second quarter of 2025. The Company conducted a productive end-of-Phase 2 meeting with the U.S. Food and Drug Administration (FDA) regarding zervimesine (CT1812) in Alzheimer’s disease and initiated an expanded access program (EAP) for patients with dementia with Lewy bodies (DLB). Enrollment in the Phase 2 “START” study of zervimesine in early Alzheimer’s disease surpassed the 50% threshold, underscoring steady clinical advancement.
• Pipeline Progress and Scientific Validation: The Company presented topline results from its Phase 2 study in dry age-related macular degeneration (dry AMD), which demonstrated a 28.6% reduction in geographic atrophy lesion growth over 18 months with once-daily oral zervimesine compared to placebo. Additionally, Cognition reported promising findings from the Phase 2 “SHIMMER” study in DLB, presented at the Alzheimer’s Association International Congress (AAIC) in Toronto. These developments were supported by published proteomics analyses and in vitro studies, providing scientific validation for the mechanism of action of zervimesine across multiple indications.
• Regulatory and Collaborative Developments: Cognition has applied for breakthrough therapy designation for zervimesine in DLB, with a decision anticipated in the third quarter of 2025. The Company also submitted a comprehensive manuscript outlining the mechanism of action of zervimesine in dry AMD to a peer-reviewed journal. Collaborations with the Alzheimer’s Clinical Trials Consortium (ACTC) and philanthropic contributions have further supported ongoing studies and the EAP, demonstrating strong external engagement and confidence in the therapeutic potential of zervimesine.
• Financial Performance: As of June 30, 2025, Cognition reported cash, cash equivalents, and restricted cash of approximately USD 11.6 million, in addition to USD 41.9 million in obligated grant funding from the National Institute of Aging. Research and development expenses were USD 11.5 million for the quarter, compared to USD 11.6 million in the prior year, primarily due to lower professional fees. General and administrative expenses declined to USD 2.5 million from USD 3.1 million, driven largely by reduced stock-based compensation. The Company posted a net loss of USD 6.7 million, or USD (0.11) per share, compared to a net loss of USD 7.0 million, or USD (0.18) per share, in the same quarter of 2024.
• Outlook and Future Milestones: Looking ahead, Cognition anticipates receiving official minutes from the FDA regarding registrational plans for zervimesine in Alzheimer’s disease, expected to clarify regulatory pathways. A decision on breakthrough designation for zervimesine in DLB is also expected within the current quarter. These regulatory milestones, coupled with ongoing clinical advancements, are anticipated to strengthen the Company’s positioning and provide significant opportunities for future partnerships to advance the development of zervimesine.

Technical Observation (on the daily chart):

Trend Analysis:

• CGTX experienced a strong rally from mid-2025, climbing from near USD 0.22 (52-week low) to a peak of USD 3.83, indicating a sharp upward breakout.
• The recent pullback has brought the price down to USD 1.56, showing a steep correction of over 50% from its highs.
• Despite this correction, the price is still trading above both the 50-day MA (USD 1.46) and the 200-day MA (USD 0.72), suggesting that the long-term trend remains intact, but short-term momentum has weakened.

Moving Averages:

• 50-day MA (USD 1.46) is serving as an immediate support zone. Sustaining above this level would be critical for maintaining medium-term bullishness.
• 200-day MA (USD 0.72) remains significantly lower, indicating that long-term support is strong and the stock has delivered substantial gains over the past months.
• The steep gap between the 50-day and 200-day MA reflects the extent of recent price volatility.

Momentum (RSI)

• RSI (14) currently stands at 41.45, which is approaching the oversold zone (<40) after the recent price decline.
• This suggests that selling pressure has been strong but may be nearing exhaustion, leaving scope for a potential technical rebound.

Key Observations:

• Bullish Case: If the stock sustains above USD 1.46, a rebound toward the USD 2.00–2.50 range could be expected.
• Bearish Risk: A breakdown below USD 1.46 may lead to further downside, potentially retesting the USD 1.00 mark or even drifting toward USD 0.72.
• Neutral View: The RSI indicates the stock is neither heavily overbought nor extremely oversold, implying that near-term price action will depend on whether support at the 50-day MA holds.

As per the above-mentioned price action, important support near USD 1.40-USD 1.50, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given for Cognition Therapeutics, Inc. (NASDAQ: CGTX) at the current price of USD 1.56, as of September 17, 2025, at 07:10 am PDT.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is September 17, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.