Cambridge Cognition Shares Plunge 20% on Clinical Trial Setbacks
Cambridge Cognition shares tumble over 20% following clinical trial cancellations and revenue challenges, despite maintaining a robust order book and receiving continued broker support.
Cambridge Cognition headquarters with digital brain health technology display
British Brain Health Technology Firm Faces Market Challenges
In a significant market development that mirrors broader British investment market volatility, Cambridge Cognition Holdings PLC (AIM:COG) witnessed its shares plummet by over 20% during Thursday's trading session, highlighting growing concerns in the UK's technology sector.
Financial Performance Overview
The British brain health technology specialist reported new sales orders of £6.9 million for the first half of 2025, with the order book expanding to £16.4 million from £13.6 million at the end of 2024. However, much like recent corporate performance challenges seen across sectors, revenue declined to £4.3 million from £5.6 million year-on-year.
Key Financial Metrics
- Adjusted EBITDA: £0.40 million loss
- Operating cash outflow: £0.3 million
- Cash balance: £0.4 million (down from £1.3 million)
- Net debt position: £1 million
Strategic Setbacks and Market Impact
In a development that has sparked concern among British market analysts following domestic innovation, the company revealed the cancellation of two clinical studies for the same drug candidate, reducing the order book by £0.8 million.
"This is a rare event for the company, and importantly, the client continues to engage Cambridge Cognition on other ongoing studies," the company stated in its official release.
Market Response and Expert Analysis
Cambridge Cognition shares experienced a sharp decline of 24% to 24.61p. However, London stockbroker Panmure Liberum maintained its confidence in British innovation, reiterating a 'Buy' recommendation with a 56p price target.
Future Outlook
The company projects full-year revenue between £9.5 to £10 million, with approximately £5.80 million of the current order book extending into 2026, demonstrating long-term resilience despite immediate challenges.