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Market: ASX
Sector: Healthcare, Equipment & Services
EPIC: CGS
Latest Price: A$0.26  (-1.89% Descending)
52-week High: A$0.28
52-week Low: A$0.15
Market Cap: A$19.41M
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CogState Limited
cogstate.com

CogState Ltd (ASX: CGS) specialises in the development and commercialisation of rapid, computerised tests of cognition (brain function). The tests are sold to pharmaceutical, biotechnology, nutraceutical and functional food companies to quantify the effect of drugs or other interventions on human subjects participating in clinical trials.

Since sales into the clinical trials market began in 2004, CogState has secured agreements with organisations including Pfizer, AstraZeneca, GlaxoSmithKline, Merck, Johnson & Johnson, Novartis, Lundbeck, Dainippon Sumitomo, Otsuka, Servier, along with a number of other organisations.

Full CogState Limited profile here
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CogState rings in 35% increase in sales revenue

28th Apr 2010, 8:29 am

Melbourne-based CogState (ASX: CGS) has today announced a bumper increase in sales revenue of 35% for the three quarters ended 31 March 2010 to A$7.55 million, up from A$5.57 million for the previous corresponding period.

CogState specialises in the development and commercialisation of rapid, computerised tests of cognition (brain function). The tests are sold to pharmaceutical, biotechnology, nutraceutical and functional food companies to quantify the effect of drugs or other interventions on human subjects participating in clinical trials.

Operating Profit was A$1.08 million for the three quarters ended 31 March 2010, up from A$0.47 million for the previous corresponding period.

Forecast sales revenue for the financial year ending 30 June 2010 is expected to be between A$8.95 to A$9.15 million (US$8.07 to US$8.27 million).

CogState recorded a net cash inflow from operations of A$1.0 million for the quarter ended 31 March 2010.

The strong cash flow result for the quarter was driven by cash receipts from customers of A$3.2 million.

Brad O'Connor chief executive officer of CogState said that, notwithstanding the strong result for the first three quarters, the company anticipates sales revenue for the fourth quarter ending 30 June 2010 will be between A$1.4 to A$1.6 million (US$1.3 to US$1.5 million).

This is significantly lower than previous quarters and is due primarily to two important events; delays in commencement of clinical trials by our customers and a slowdown in new studies in schizophrenia following the decision by a small number of CogState’s customers to refocus resources away from schizophrenia as an indication.

O'Connor said CogState’s revenue is irregular in nature, reflecting the fact that CogState has a small number of high value sales contracts. Despite the June quarter revenue slowdown, CogState continues to build momentum in clinical trial sales in Alzheimer’s disease as well as other new indications.

CogState’s financial results continue to be impacted by the strength of the Australian dollar. In US dollars CogState’s sales revenue for the three quarters ending 31 March 2010 was US$6.77 million, up from US$4.06 million, an increase of 67% for the previous corresponding period.

Additionally, CogState is progressing well on bringing new products to market, he said.

CogState provides guidance that Operating Profit for the year to 30 June 2010 will be in the range of A$0.2 to A$0.4 million. The anticipated Operating Profit result could still be impacted by new sales contracts signed before 30 June 2010.

Since sales into the clinical trials market began in 2004, CogState has secured agreements with organisations including Pfizer, AstraZeneca, GlaxoSmithKline, Merck, Johnson & Johnson, Novartis, Lundbeck, Dainippon Sumitomo, Otsuka, Servier, along with a number of other organisations.

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