Biopharma Company Reveals High-Impact SCI Recovery Gains

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

NervGen Pharma Corp. (NGEN:TSX.V; NGENF:OTCQX) announced on May 26, 2026, the results of positive independent, blinded biomechanical gait analyses demonstrating neural recovery with its drug, NVG-291, in the Phase 1b/2a CONNECT SCI study. Newton Tech, an AI-powered movement intelligence company specializing in video-based motion capture and computational analysis of standardized walking assessments to produce quantitative measures of gait quality, analyzed the biomechanical data.

Based on the Global Statistical Test, 100% (10/10) of NVG-291 subjects were classified as responders across the composite of the hallmarks of genuine neural recovery, versus 10% of placebo subjects. The data analyzed coordination, mechanical effort, and postural stability.

Key findings from the analyses include:

• Multivariate Global Treatment Effect (GTE): Integrating the established hallmarks of genuine neural recovery into a unified assessment, the GST demonstrated a statistically significant treatment effect favoring NVG-291 (GTE = +0.45; 95% CI: +0.15 to +0.72; p=0.0197), corresponding to a 72.7% probability of treatment benefit with NVG-291 versus placebo.
• Responder Analysis: Based on the GST, 100% (10/10) of NVG-291 subjects were classified as responders across the composite of the recovery measures of coordination, mechanical effort, and postural stability, compared to just 10% (1/10) of placebo subjects (p=0.0001). A responder was classified as a subject who outperformed the majority of opposite-arm subjects across the composite.
• Speed-Effort Dissociation: Among placebo subjects, gains in walking speed were statistically correlated with increased mechanical effort (peak knee angular velocity vs. speed: r=+0.83; p=0.003), consistent with compensation. This association was not observed in NVG-291 subjects, consistent with speed gains driven by restored neural control rather than compensatory effort.
• Consistency Across Recovery Measures: The multivariate treatment effect was consistent across all three recovery measures, with each favoring NVG-291 with statistical significance versus placebo.

Adam Rogers, MD, President, and CEO of NervGen, said in the release, "These results extend the robust efficacy observed in the Phase 1b/2a CONNECT SCI study, providing independent and objective evidence that NVG-291 is promoting genuine neural recovery, as reflected in lower-body locomotor function. In a chronic population, where meaningful natural recovery has largely plateaued, these findings strengthen the growing evidence supporting NVG-291 as a potentially best-in-class restorative therapy for chronic tetraplegia. When combined with previously reported clinical improvements, these new biomechanical findings further reinforce the foundation upon which we are advancing NVG-291 into the Phase 3 RESTORE registrational study in chronic tetraplegia, and our potential path to approval as the first pharmacologic therapy capable of enabling the nervous system to repair itself."

NervGen Pharma Corp. is a Canadian clinical-stage biopharmaceutical company focused on developing the first neuroreparative therapeutics for spinal cord injury (SCI) and other neurotraumatic and neurologic conditions.

Pharma Sector R&D Spending Unstable but Crucial

Neurorestorative therapies aim to repair and regenerate neural tissue after traumatic injuries, enacting ". . . a shift from simply protecting the brain to actively helping it heal."

In February 2026, Iqvia discussed the global pharma market projection for 2026, noting that total drug usage is expected to surpass four trillion doses daily by 2030. They wrote, "The largest drivers of medicine spending growth through the next five years will continue to be the use in developed markets of innovative therapeutics, especially in oncology, immunology, diabetes, and obesity."

Pharma sector funding fell between 2024 and 2025, according to a March 26, 2026, article for Fierce Biotech by Nick Paul Taylor.  He wrote that pharma funding had fallen from 2024 but noted that, "2025 was still the third-best year of the past decade. Similarly, overall funding was well above the pre-pandemic norm and only topped by 2020, 2021, and 2024."

At the same time, J. Edward Moreno of Sherwood News reported contradictory news on January 14, 2026, writing that, "In 2025, announced global biotech deals totaled US$228.4 billion, up from US$132.3 billion in 2024, data from Dealogic shows . . . Just two weeks into 2026, US$9.2 billion in deals have been announced."

According to Moreno, movement is expected in the sector: "As some of the most lucrative drugs lose exclusivity in the next few years, pharmaceutical giants are increasingly shopping around for biotechs to add to their portfolios — and they are more than happy to pay a hefty premium for the right company . . . For some Big Pharma companies, business development spending is now about equal to, or more than, research and development."

This statement could explain the emerging drop in research and development spending at biotech and pharma companies. On March 25, 2026, BioSpace's Annalee Armstrong reported that, "R&D spending at the top 16 pharmaceutical companies declined by 3.6% overall in 2025, as many aggressively cut spending and refocused pipelines."

BCG talked about trends biopharma companies need to be aware of in 2026 in order to stay competitive, saying, "Near term, companies need to continue to innovate to decrease the complexity and cost of these therapies, and governments can find ways to incentivize and pay for them. The longer-term challenge for companies is to factor operational and economic considerations into R&D decision making earlier, ensuring that trial designs match real-world usage, indication sequences match opportunity, and endpoints enable market access."

Anticipated Data "As Good As We Hoped"

Scott McAuley, Ph.D., provided an April 15, 2026, research note for Paradigm Capital and gave the company a "Speculative Buy" rating, with a price target of CA$4.32. McAuley expressed anticipation for the results of the Phase 2 RESTORE trial, stating, "We conservatively assume that top-line data will be released in mid-2028, with approval in 2030."

Andre Uddin, Ph.D., and Seungwoo Lee, Ph.D., also provided opinions on NervGen on April 27, 2026. The pair rated the company a "Speculative Buy", with a price target of CA$5.50. The addition of Dr. Keith Vendola to the management team as CFO seemed to be their main driver. They wrote, "In our view, adding a CFO with deep corporate finance and capital markets experience strengthens the management team ahead of important milestones."

H.C. Wainwright and Co.'s Raghuram Selvaraju, Ph.D., weighed in on April 27, 2026, as well. Selvaraju gave the company a "Buy" rating, with a price target of CA$18.00. "We believe that NVG-291 could be launched independently, even by a company of NervGen's size. The unmet nature of the medical need in chronic SCI patients may permit ultra-premium pricing, but even pricing in the US$200K range would imply peak sales potential exceeding US$2B at only a ~10% market penetration rate," he wrote, arguing that the current patient population is "almost totally unserved."

On May 26, 2026, Chen Lin of What is Chen Buying? What is Chen Selling? wrote: "Last Friday was a very bad day for NGEN. NGEN is listed on Nasdaq, and shares hit seven. I thought they would raise at that time, just like MSLE, but they didn't. They were taunting the Gait data. I thought it would be a good one, and the stock would pop, then they would raise the money. But they raised money last week — US$60 million at 2.5 with a 5-year warrant at 3.68, which is a huge dilution of existing shareholders. This kind of raise happened often in the bear market three years ago, which I was trying hard to avoid, but it is very hard to accept now as biotech is in a much better environment."

Lin continued: "This morning, the long-awaited Gait data came out, and it was as good as we hoped — 10 out of 10 showed improvement vs 1 out of 10 in placebo groups. I do think they have a chance for accelerated approval (AA). If NGEN files for AA in the coming week, with the financing overhang, it is probably a good buying opportunity. If they don't file, it would be a 2028 story."

Phase 3 Plans in Place

The company plans to begin the RESTORE Phase 3 registrational study in mid-2026. Design and guidelines for Phase 3 will be as follows:

• Study Design: Randomized, double-blind, placebo-controlled; approximately 150 subjects.
• Population Characteristics: Adults aged 18-75 with chronic tetraplegia due to traumatic SCI (≥C7; ASIA Impairment Scale C or D), 1-10 years post-injury.
• Study Sites: Up to 60 sites across the United States and Canada.
• Dosing Regimen: Daily subcutaneous injections of NVG-291 for 12 weeks, followed by a 4-week observational period.
• Primary Endpoint: Change from baseline to Week 12 in GRASSP Quantitative Prehension (QtP), a validated measure of functional hand use.
• Key Secondary Endpoints: PGIC, CGIC, Spinal Cord Independence Measure, Version-III (SCIM-III), and lower extremity spasticity, as measured by the Modified Ashworth Scale.
• Qualitative Assessments: Blinded qualitative interviews will be conducted when exiting the 16-week study period to contextualize the clinical meaningfulness and real-world impact of NVG-291.
• Open-Label Extension (OLE): An optional 12-week OLE will follow the main study, providing access to NVG-291 for all placebo-randomized subjects.

Ownership & Share Information¹

NervGen Pharma Corp. has a market cap of US$175.07 million, with 82.19 million shares outstanding. The company's 52-week range is US$1.50-US$6.30.

Institutions own 0.18% of shares, while Management & Insiders own 2.51%. Strategic Investors own 18.42%, and the remaining shares are held by Retail.