The Cogstate Ltd (ASX: CGS) share price is up 15% after the company provided a FY27 first quarter update.
Cogstate says it’s a global central nervous system (CNS) endpoint innovations company that partners with drug developers to power complex neuroscience studies. Its offerings include fit-for-purpose data quality programs, advanced analysts and digital cognitive testing.
FY27 first quarter
It said that net sales contracts executed amounted to US$25.1 million, representing year on year growth of 17.3%. This was the second-best quarter on record.
The ASX share said the result reflects continued execution of the company’s strategy to combine scientific leadership in CNS endpoint quality with a growing channel partnership ecosystem. This allows sponsors to access Cogstate’s expertise while working with their preferred clinical technology providers.
Cogstate said the FY27 first quarter’s strength demonstrated the ASX share’s ability to win market share in mood disorders, including the competitive win of five phase 3 trials in either bipolar or depression, across two customers, contributing over 80% of the total contract sales value that was executed during the quarter.
The ASX share noted that sponsors commonly retain providers from earlier phases of development when progressing to phase 3 studies.
Its channel partnership strategy was an important factor in its appointment to these programs. By enabling sponsors to work with their preferred data capture and clinical technology providers, while leveraging Cogstate’s expertise in endpoint quality and complex global study execution, the ASX share was able to secure work that may historically have been more difficult to win independently.
Contracted revenue
The company also provided the numbers of its contracted revenue position at 30 September 2026.
It said for the first half of FY27, contracted revenue was up 38% year on year to $31.7 million.
For FY27, contracted revenue was up 45% to $56.8 million.
Finally, for between FY28 to FY33, contracted revenue is up 39% to $86.9 million.
Final thoughts on the Cogstate share price
I’m not an expert on the company, but it’s clear the business is growing at a strong double-digit pace and that’s what investors like to see.
It could be one to watch, though it’s not one of the first ASX growth shares I’d buy.
