Neuroscience technology company Cogstate (ASX: CGS) revealed it has executed US$26.8 million (A$38.88 million) in clinical trial sales contracts for the 2020 financial year to date – making it the company’s best half year result on record.
During the September quarter, Cogstate clocked US$7.7 million (A$11.17 million) in clinical trial sales contracts and has followed this with a further US$19.1 million (A$27.71 million) in the current quarter.
This compares to US$10 million for the same period in FY 2019 and US$21.6 million in FY 2018.
Cogstate chief executive officer Brad O’Connor said the record December half year was a reflection of “accelerating demand” for the company’s scientific solutions and technologies.
“Over the last month, especially, we have executed a number of contracts in respect of studies that are planning to begin in the March quarter of 2020.”
He added that although the growth was not entirely unexpected, the results have exceeded the company’s expectations.
Contributing to the growth was a rebound in Alzheimer’s disease investment after a series of clinical trial failures in FY 2019.
Cogstate brain health assessment technology
Cogstate’s strategy is to optimise brain health assessments to enable earlier clinical insights and help advance development of new medicines.
The company uses a combination of science, technology and operational expertise to identify cognitive change in clinical trials, clinical practice and academic research.
In trials, Cogstate’s technology provides data quality assurance for study endpoints that combine innovative operational approaches, advanced analytics and scientific consulting.
Moving forward, Mr O’Connor said Cogstate had a strong pipeline of sales opportunities for the remainder of FY 2020, which it would be seeking to execute.
“A further trading update in respect of the second half of the financial year will be provided at the time of release of our half year financial statements in February 2020,” Mr O’Connor added.
Investors reacted positively to the company’s financial update – sending Cogstate’s shares up almost 27% to $0.38 by mid-morning.