CogState makes ASX debut

Melbourne company CogState has made its debut on the ASX, after raising AUD$7 million in its IPO.

The company's share price opened at $0.56 -- a slight premium on the issue price of $0.50. At the time of writing, the share price had dropped to $0.52.

CogState has developed a computerised cognition function test, used for testing of neurological function in people with Alzheimer's disease and other neurodegenerative disorders, as well as to test brain recovery following concussion in athletes.

The CogState test is already being used by drug companies including Pfizer and Johnson & Johnson in early-phase clinical trials to determine the impact of drugs on cognitive function. Around the world, about 20 research studies are also making use of the test.

And the test will shortly be launched through Australian medical software and applications company Health Communications Network (HCN) to general practitioners across Australia for early testing of Alzheimer's disease and monitoring of concussion in contact-sports players.

The sports concussion version of the test, CogSport, is being used by a number of elite sports teams and organisations including the AFL, rugby organisations in Australia, the UK and South Africa, and the Jockey Club of Great Britain, among others.

CogState is also pursuing therapeutic development of drugs for the treatment of neurological diseases through a number of in-licensed projects including an Alzheimer's drug based on angiotensin-4 receptor agonists, and a Parkinson's drug that utilises fatty acids to deliver dopamine precursor tyrosine to the brain. Revenues from the diagnostics business are being used to partially offset the drug development costs.

The company plans to develop the drugs to a point at which they can be out-licensed to pharmaceutical companies.