The new patent for neflamapimod covers the treatment of dementia with Lewy bodies in patients without significant signs of Alzheimer’s disease.
- Neflamapimod is an oral drug that works by reducing inflammation and damage in the brain.
- CervoMed needs additional funding or a partnership to move forward with a late-stage trial.
- Separately, the company announced it is raising $10 million by selling 2.5 million new shares of its common stock at $4 per share.
Shares of CervoMed Inc. (CRVO) soared 95% on Thursday before paring gains after the company announced it had received approval for a new U.S. patent that protects the use of its lead drug neflamapimod.
The new patent covers the treatment of dementia with Lewy bodies in patients who do not show significant signs of Alzheimer’s disease. There are currently no approved treatments for dementia with Lewy bodies in the United States or Europe. The protection is expected to run into 2042.
The stock started paring gains after the company announced a direct offering of its common stock, in a bid to raise capital. At the time of writing, the stock was up 14%.
CRVO Eyes Next Step For Neflamapimod
Neflamapimod is an oral drug that works by reducing inflammation and damage in the brain. The company recently completed a mid-stage study in patients with dementia with Lewy bodies who fit this profile. In late 2025, CervoMed reached an agreement with the FDA on a potential path to approval for the drug in this condition. A larger late-stage study is planned but will require additional funding or a partnership to move forward.
CervoMed is also testing neflamapimod in other brain disorders, including certain types of frontotemporal dementia and ALS. Early data from one of these studies is expected later this year.
CRVO Announces Capital Raise
Separately, CervoMed announced it is raising $10 million by selling 2.5 million new shares of its common stock at $4.00 per share. The company said it plans to use the money for working capital and general corporate purposes. The offering is expected to close around June 22.
How Did CRVO Retail Traders React?
On Stocktwits, retail sentiment around CRVO stayed within the ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘extremely high’ levels.
A Stocktwits user said they see the stock pare gains.
According to data from Koyfin, all seven analysts covering CRVO rate it a Buy. The stock has a 12-month average price target of $19.50, representing a potential upside of about 412% from the stock’s last close.
CRVO stock has fallen about 15% this year.
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