Why Clinuvel, Cogstate, Omni Bridgeway, and Westgold shares are sinking

A worried man holds his head and look at his computer.

A worried man holds his head and look at his computer.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and is on course to end the week on a positive note. At the time of writing, the benchmark index is up 0.3% to 7,308.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price is down 3% to $23.33. This is despite the release of the pharmaceutical company’s half-year results, which revealed explosive earnings growth. Clinuvel reported a 19% increase in revenue and a 94% jump in profit after tax. This was driven by growth in prescriptions and expert centres administering the Scenesse therapy.

CogState Limited (ASX: CGS)

The CogState share price is down 25% to $1.22. This neuroscience technology company advised that it expects to report a 12% decline in first-half clinical trials revenue to $17.1 million and breakeven profit before tax. This soft performance has been driven by a slower than expected enrolment of patients by pharmaceutical companies in a small number of their large Alzheimer’s trials.

Omni Bridgeway Ltd (ASX: OBL)

The Omni Bridgeway share price has crashed 18% to $2.97. Investors have been selling this class action funder’s shares since the release of its half-year results on Thursday. As well as a poor result, which saw Omni Bridgeway report a net loss after tax of $30.1 million, the company revealed that its long-serving CEO would be retiring from the role later this year.

Westgold Resources Ltd (ASX: WGX)

The Westgold share price is down 5% to 91 cents. This morning, this gold miner released its half-year results and reported a 1% increase in revenue to $315 million but an $11.1 million loss after tax. This is down from a $19.9 million profit a year earlier.

The post Why Clinuvel, Cogstate, Omni Bridgeway, and Westgold shares are sinking appeared first on The Motley Fool Australia.

4 ways to prepare for the next bull market

It’s a scary market. But staying in cash when inflation is surging likely won’t do investors any good either.

And when some world-class companies have pulled back considerably from their recent highs… All while their fundamentals remain unchanged…

It begs the question…

Do you have these 4 stocks in your portfolio?

See The 4 Stocks
*Returns as of February 1 2023

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Cogstate. The Motley Fool Australia has positions in and has recommended Cogstate. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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