Cognition Therapeutics Plunges 12.75% on $30M Stock Offering

On August 28, 2025, Cognition Therapeutics' stock experienced a significant drop of 12.75% in pre-market trading.

Cognition Therapeutics recently announced a $30 million registered direct offering of common stock, involving the sale of 14.7 million shares to two new institutional investors. This funding is crucial for advancing zervimesine into Phase 3 clinical trials, a pivotal stage in drug development. The proceeds will also support working capital and general corporate purposes, strengthening the company's financial position as it prepares for late-stage clinical development.

The participation of prominent institutional investors signals strong external validation of Cognition's clinical programs and business strategy. This capital infusion is strategically timed to support the company's advanced clinical programs targeting neurodegenerative disorders, an area with significant unmet medical needs and commercial potential. The offering represents an efficient capital-raising mechanism, avoiding the typical discount associated with PIPE transactions.

Cognition Therapeutics is a clinical-stage biopharmaceutical company focused on developing innovative, small molecule therapeutics for age-related degenerative disorders of the central nervous system. The company's lead candidate, zervimesine, is currently in Phase 2 studies for dementia with Lewy bodies, mild-to-moderate Alzheimer’s disease, and geographic atrophy secondary to dry AMD. The Phase 2 START study in early Alzheimer’s disease is ongoing with $81 million in grant support from the National Institute of Aging.