Cognition Therapeutics, Inc. has reported a decrease in cash and cash equivalents, with a net loss of $10.8 million for the quarter ended March 31, 2024. The company’s total assets have also decreased, while total liabilities have increased. The financial report highlights the company’s ongoing efforts to develop treatments for neurodegenerative diseases and the challenges they face in the competitive pharmaceutical industry.
Overview
Cognition Therapeutics is a clinical-stage biopharmaceutical company developing treatments for age-related degenerative brain diseases like Alzheimer’s. They currently have no approved treatments and have incurred significant losses since they started in 2007, totaling $150.3 million as of March 2024. They have funded operations mostly through government grants and selling stock. They plan to continue spending significantly on research as they advance their lead candidate CT1812 through clinical trials.
COVID-19 Impact
The COVID-19 pandemic has disrupted clinical trials globally. Cognition has made adjustments to ensure safety and minimize risks, but further changes may be needed, which could delay development. Economic impacts could also reduce their ability to raise funding.
Revenue and Expenses
Cognition has no revenue yet and spends mainly on research and development (R&D) expenses to develop CT1812. These costs will increase as trials progress and they expand the pipeline. General and administrative (G&A) costs support operations.
Financial Results, Q1 2024 vs. Q1 2023
Category | Q1 2024 | Q1 2023 | Change |
---|---|---|---|
R&D Expenses | $10.6 million | $5.4 million | Increased $5.1 million due to more clinical trial activity |
G&A Expenses | $3.5 million | $3.5 million | No significant change |
Grant Income | $4.9 million | $3.4 million | Increased due to higher clinical trial costs |
Net Loss | $9.2 million | $6.2 million | Loss increased due to higher R&D costs |
Cash Position
Cognition had $34.7 million in cash at March 2024, raised from stock offerings, government grants, and other sources. They estimate this can fund operations through Q2 2025. They will likely need more funding to complete trials and launch CT1812.
Future Outlook
Cognition expects R&D costs to continue increasing substantially as trials progress. They will need significant additional funding in the future, likely through public or private stock offerings. Clinical and regulatory outcomes will determine future commercial potential.