Cogstate (CGS: $2.88) has announced a very strong year of sales for FY2026. Sales contracts signed over the period were up US$47.7 million from the previous year to US$89 million.
There is good consistency as well across the quarters, with quarterly sales varying between just US$21 - US$26 million during the year.
Another pleasing metric is the level of revenue that is expected to be recorded from these contracts, and previous contracts signed, in the coming year. Contracted revenue for this financial year is already US$46.1 million from clinical trials compared to US$29.2 million at the same time last year.
Bioshares estimates that clinical trial revenue for the full year should be around US$60 million for FY2026 (US$50.6 million last year). At the current rate of sales contracts being signed, clinical trial revenue should near US$75 million in the current financial year.
The very strong growth in the company's revenue is being driven by a diversification into other disease areas (outside of Alzheimer's disease), the contribution now from its channel partners, and from the growth in the CNS drug development field.
Cogstate is capitalized at $492 million.
Bioshares recommendation: Hold
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