Cognition Therapeutics’ Stock Plummets Following Disappointing Phase 2 Alzheimer’s Trial Results

1. Stock Decline: Cognition Therapeutics' stock dropped 15% to $2.04 in pre-market trading and 31% overall, marking its biggest-ever one-day percentage decline, after the company announced disappointing results from its Phase 2 SHINE trial for an oral treatment for mild to moderate Alzheimer's disease.
2. Trial Results: The trial, which involved 153 adults, met its primary endpoint of safety and tolerability but failed to meet its efficacy goal focused on symptom severity. The treatment showed a 39% slowing of decline but only a 1.04-point difference compared to the placebo group.
3. CEO's Statement: CEO Lisa Ricciardi highlighted the consistent trend in cognitive improvement across all measures and cognitive scales, emphasizing the potential of amyloid oligomer antagonism as a therapeutic intervention.
4. Future Trials: The company is analyzing the data and looking forward to the results of its Shimmer trial in mild to moderate Lewy body dementia and the Start trial involving 540 patients with early-stage Alzheimer's.
5. Market Impact: The news came just days after European regulators rejected Biogen's Alzheimer's disease treatment, and Cognition's stock is now down 16% year-to-date, contrasting with the SPDR S&P Biotech exchange-traded fund's 12.7% gain and the S&P 500's 14.4% gain.