NervGen Pharma Corp. (NGEN) is having a good Tuesday. The clinical-stage biopharma company announced positive results from an independent, blinded biomechanical gait analysis of its lead drug candidate, NVG-291, and investors are liking what they see.

The data comes from the Phase 1b/2a CONNECT SCI study, which is testing NVG-291 in patients with chronic spinal cord injuries. The analysis, done by an AI-powered movement company called Newton Tech, looked at three hallmarks of true neural repair: coordination, mechanical effort, and postural stability. The results were striking.

According to the company, the drug produced a statistically significant improvement in gait quality (p=0.0197). But the headline number is the responder rate: 100% of the 10 patients treated with NVG-291 were classified as responders across composite recovery measures, compared to just 10% (1 out of 10) in the placebo group. That difference is highly significant (p=0.0001).

"The multi-domain biomechanical signature reported here is precisely the pattern one would hope to find from a therapy enabling true underlying neural recovery," said Armin Curt, Clinical Director of the SCI Center at Balgrist University Hospital.

NervGen CEO Adam Rogers said the findings "further reinforce the foundation upon which we are advancing NVG-291 into the Phase 3 RESTORE registrational study in chronic tetraplegia." The company is on track to start that Phase 3 study in mid-2026.

So the science is promising. But what about the stock? NGEN shares were up 5.29% in premarket trading Tuesday at $2.19. That's a nice pop, but the stock has had a rough run lately. At $2.16, it's trading 40.8% below its 20-day simple moving average (SMA) of $3.65, 44% below its 50-day SMA of $3.86, and 44.6% below its 100-day SMA of $3.90. That means there's a lot of overhead supply to work through if the rally continues.

The more encouraging sign is that the stock is still 9.3% above its 200-day SMA of $1.98. That $2 level has been acting like a line in the sand that bulls want to defend. The moving-average stack is mixed — the 20-day SMA is below the 50-day SMA (bearish), but the 50-day SMA remains above the 200-day SMA, which is a longer-term positive if the stock can reclaim those shorter averages.

Key resistance to watch is $3.65, the 20-day SMA, which would be a logical first test if the rebound extends. On the downside, support sits at $1.98, the 200-day SMA, which lines up with the broader $2 pivot zone.

For now, the market is focused on the data. And the data looks good.