This Canadian biotech stock is looking to treat spinal cord injuries

In a Nov. 24 update, Research Capital analyst André Uddin maintained his “Speculative Buy” rating and $7.70 target price on NervGen Pharma (NervGen Pharma Stock Quote, Chart, News, Analysts, Financials TSXV:NGEN), which is developing NVG-291 for the treatment of spinal cord injury.

Vancouver-based NervGen reported no third-quarter revenue, matching expectations and unchanged from a year earlier. The company posted a net loss of $4.2-million, or $0.04 per share, versus a loss of $5.2-million last year. Cash at quarter end was $11.4-million with no debt.

After quarter end, NervGen completed a US$10-million (approximately $14.2-million) non-brokered private placement. Uddin estimates the company’s cash position at roughly $23-million, or $28-million assuming partial exercise of in-the-money options and warrants. He noted, however, that “the timing and magnitude of exercises remain at the discretion of holders.”

Uddin focused primarily on clinical progress, citing week-16 NVG-291 data and blinded exit interviews conducted up to 364 days post-study. According to the company, functional gains continued to build beyond week 12. NVG-291-treated patients showed a 2.6-fold greater mean improvement in GRASSP Total Score versus placebo, including a 3.7-fold relative improvement in hand function.

NervGen said 75% of treated participants reported “much” or “very much” improvement in overall symptoms versus 33% for placebo. Improvements were also reported in bladder control (67% vs. 22%) and reductions in muscle spasticity (56% vs. 22%).

The company also reported statistically significant reductions in hyperactive reticulospinal signalling, a physiological marker linked to impaired nerve connectivity. In the leg, treated patients exhibited a 142% greater reduction versus placebo, and in the hand, a 48% greater reduction.

NervGen said that reduced reticulospinal activity in the hand correlated with strengthened corticospinal signalling, which it said “supports restoration of balance between voluntary and involuntary motor pathways.”

Uddin described the overall clinical signals as noteworthy but emphasized that the data come from a small study. He said that “a larger, more powered trial may report even more robust outcomes,” while stressing that further validation in future trials will be critical as development continues.

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