Why has Cogstate surged 85% this month?
Cogstate Ltd (ASX:CGS) is a neuroscience technology company optimizing brain health assessments to advance the development of new medicines and to enable earlier clinical insights in healthcare.
Cogstate technologies provide rapid, reliable and highly sensitive computerized cognitive tests across a growing list of domains and support electronic clinical outcome assessment solutions to replace costly and error-prone paper assessments with real-time data capture. The company’s clinical trials solutions include quality assurance services for study endpoints that combine innovative operational approaches, advanced analytics and scientific consulting.
On October 26, Cogstate announced that it has entered into an agreement with the pharmaceutical company, Eisai Co., Ltd., to exclusively distribute Cogstate digital cognitive assessment technologies in healthcare and other markets worldwide.
Under the terms of the agreement Eisai will:
provide an upfront payment to Cogstate of US$15 million
pay Cogstate a royalty
fund necessary product development activities, and
be responsible for all commercial activities in respect of the sale and marketing of Cogstate technology
At Cogstate's AGM on October 27, shareholders were shown a video, where leaders from the two companies share perspectives on the partnership and the importance of early cognitive testing to help address the global impact of Alzheimer's disease.