Denali Therapeutics Inc. (DNLI) saw its stock price surge 7.98% during pre-market trading on Thursday.

The sharp rise appears to be linked to positive sentiment in the Alzheimer's disease treatment sector. Biogen announced plans to advance its experimental Alzheimer's therapy, diranersen, to late-stage development after it showed promise in reducing tau protein buildup and demonstrated cognitive benefits in a mid-stage trial. As Denali Therapeutics also has an Alzheimer's treatment in development, investors reacted optimistically to the broader progress in the field.