Latest results from Argenica Therapeutics' (ASX:AGN) second phase trial of neuroprotective drug candidate ARG-007 in acute ischemic stroke showed "encouraging" signs of functional improvement across cognition,

independence, and quality of life, Euroz Hartleys said in a Wednesday note.

Key findings show that ARG-007 improved cognitive outcomes, with over 58% of treated patients achieving normal performance compared with more than 35% of the placebo group.

Over the key recovery window of day 30 to day 90, patients receiving ARG-007 demonstrated over 13% improvement in functional independence while placebo patients showed a decline by 8.7%.

Additionally, ARG-007-treated patients showed smaller but consistent improvements in quality of life compared with the placebo group by day 90.

Consistent improvements across multiple functional measures reinforce the efficacy signal from the findings, the investment advisory firm said.

Euroz Hartleys maintained its speculative buy recommendation and AU$1.30 price target on Argenica Therapeutics.

Argenica Therapeutics' shares rose nearly 21% in afternoon trade Wednesday.