Fund Manager Summary
The fund managers believe that Cogstate Ltd presents a significant investment opportunity in the burgeoning field of Alzheimer’s disease research. With over 55 million people affected globally, and the patient pool expected to double every 20 years, the need for effective treatments remains critical. In their opinion, Cogstate serves as a vital provider of computerized cognitive tests that are essential in clinical trials, positioning it as a 'picks and shovels' investment. The recent approval of two drugs has enhanced the regulatory landscape, paving the way for increased investment in Alzheimer’s research. Despite current challenges, such as low clinical trial contract uptake, the fund managers are optimistic about Cogstate's long-term growth potential as it addresses a pressing societal issue, making it a compelling addition to their portfolio.
Source: Trading View
Commentary From The Managers
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LSN Capital Partners
5 Nov 2025
$2.77
Summary
- LSN Capital Partners highlights Cogstate's growth driven by increasing pharmaceutical engagement.
- Accelerating adoption of its digital cognitive testing platform in global Alzheimer’s trials.
- Recent takeover offer for a peer company indicates a valuation significantly above Cogstate’s current multiple.
- This underscores the strategic value of Cogstate's technology.
- Emphasizes the growing importance of cognitive-assessment tools in drug development.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
LSN Capital Partners
5 Nov 2025
$2.77
- LSN Capital Partners highlights Cogstate's growth driven by increasing pharmaceutical engagement.
- Accelerating adoption of its digital cognitive testing platform in global Alzheimer’s trials.
- Recent takeover offer for a peer company indicates a valuation significantly above Cogstate’s current multiple.
- This underscores the strategic value of Cogstate's technology.
- Emphasizes the growing importance of cognitive-assessment tools in drug development.
Summary
Lakehouse Capital
31 Oct 2025
$2.75
- Lakehouse Capital first discussed Cogstate in the 2024 Annual Letter as an industry leader in computerized cognitive assessments for clinical trials and healthcare.
- The company specializes in brain health measurement and the central nervous system (CNS).
- Cogstate has captured a greater share of the expanding global CNS market, with renewed momentum in clinical trials accelerating sales activity.
- The recent first quarter update showed higher proposal activity, leading to Cogstate’s second-highest sales quarter on record at $21.4 million, up 88% year-on-year.
- The growth was broad-based, with new customer wins across a wider range of CNS indications, reducing reliance on Alzheimer’s disease trials.
- The Medidata partnership is enhancing Cogstate’s product offering and expanding its distribution reach.
- This partnership helps secure new contracts in growth areas including rare disease, depression, schizophrenia, and narcolepsy.
- As Cogstate reinvests to scale its expertise in these new segments, Lakehouse Capital believes its competitive position in an expanding CNS market provides a long runway for sustained growth.
Summary
Lakehouse Capital
30 June 2024
$1.11
- Cogstate is a newly initiated position by Lakehouse Capital, impacting Fund performance negatively by -1.1%.
- The company specializes in computerized cognitive tests, essential for clinical trials in Alzheimer's disease.
- Alzheimer's currently affects over 55 million people globally, with numbers expected to double every 20 years.
- The disease presents a significant unmet medical need, despite recent FDA-approved treatments that slow cognitive decline.
- The aging population increases the patient pool, highlighting a challenge and opportunity for pharmaceutical companies.
- Lakehouse Capital anticipates that recent breakthroughs in drug discovery will catalyze further investment in Alzheimer's research.
- The investment in Cogstate is viewed as a 'picks and shovels' strategy, allowing exposure to the thematic growth without the risks of drug development.
- Lakehouse Capital has monitored Cogstate for years, waiting for clearer regulatory and reimbursement pathways before investing.
- With two approved drugs now available, the environment is favorable for ongoing drug development.
- The current lack of clinical trial contracts and lower liquidity are challenges, but Lakehouse Capital believes in the company's potential for future growth.
- This investment thesis is still in its early stages, with optimism for Cogstate's role in addressing a significant societal issue.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"Investing in Cogstate seems like a strategic play in the burgeoning Alzheimer's research landscape; as the aging population grows, so does the opportunity for innovative solutions. The potential for significant returns appears promising, despite initial setbacks in performance."
Last Updated: 05 Nov 2025
Query The Data
Frequently Asked Questions
Who is investing in Cogstate Ltd (ASX:CGS)?
Fund managers including Lakehouse Capital and LSN Capital Partners have invested in Cogstate Ltd (ASX:CGS).
Why do fund managers invest in Cogstate Ltd?
Fund managers are investing in Cogstate Ltd due to its position as a leading provider of computerized cognitive tests essential for Alzheimer's disease clinical trials. With over 55 million people affected globally and a growing aging population, the demand for effective Alzheimer's treatments is rising. Recent FDA-approved therapies signal a favorable environment for continued drug development, positioning Cogstate as a strategic investment in the healthcare sector. This 'picks and shovels' approach allows fund managers to gain exposure to the expanding market without the high risks associated with direct drug development.
What happened to Cogstate Ltd (ASX:CGS)?
Fund managers are investing in Cogstate Ltd due to its strong position in the growing cognitive assessment market, particularly in Alzheimer's trials and broader CNS applications. Recent reports highlight increased pharmaceutical engagement and significant sales growth, with a record quarter reflecting a diverse customer base. The strategic value of Cogstate's technology is underscored by a recent takeover offer for a peer, enhancing sentiment around its potential. Additionally, partnerships, like the one with Medidata, are expanding its reach into new therapeutic areas, positioning the company for sustained growth.