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Wednesday, July 24, 2024

What Happened to SAVA in The Last Few Days? – Market Commentary

SAVA Market Commentary

After the DOJ Indictment SAVA fell over 30% reaching new lows. It seems the stock has begun to recover, however, it’s unclear if it could fully recover from what has happened. There is a possibility that investors could view this as a temporary setback, mainly due to SAVA continuing their research without the involvement of Dr. Wang.

SEC Disclosure and Dr Wang

Cassava Sciences, Inc., a biopharmaceutical company focused on developing treatments for Alzheimer’s disease, has recently disclosed developments regarding ongoing investigations by the U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC). The company is also conducting an internal investigation following new information provided by the SEC.

Key points from SEC Disclosure:

  1. DOJ Indictment of Dr. Hoau-Yan Wang: On June 28, 2024, Dr. Wang, a former scientific collaborator and advisor to Cassava, was indicted by a federal grand jury. The indictment alleges that Dr. Wang made false and fraudulent representations in grant applications to the National Institutes of Health (NIH) regarding Cassava’s therapeutic product candidate, simufilam.
  2. Internal Investigation: Cassava’s Board of Directors has empowered an Ad Hoc Investigation Committee to conduct an internal investigation based on information provided by the SEC and the DOJ indictment of Dr. Wang.
  3. Phase 2b Study Disclosures: The company has supplemented its prior disclosures regarding the Phase 2b Study of simufilam. Notable revelations include:
  • Potential unblinding of Dr. Wang to some study participants before bioanalysis.
  • Clarification on the exclusion of certain study participants from the reported analysis of cognitive outcome measures.
  1. Ongoing Phase 3 Trials: Cassava is currently conducting two Phase 3 clinical trials of simufilam, with approximately 1,900 patients enrolled. The company emphasizes that all efficacy data remain blinded and that independent third-party firms will analyze the data.
  2. Financial Ties with Dr. Wang: The company disclosed details of its financial relationship with Dr. Wang, including monthly stipends, stock options, and his previous participation in a cash incentive bonus plan.

Impact on Ongoing Research and Clinical Trials

Despite the ongoing investigations and the indictment of Dr. Wang, Cassava Sciences is moving forward with its clinical trials for simufilam. The company has emphasized that its two Phase 3 trials, which have enrolled approximately 1,900 patients, are proceeding as planned. To ensure the integrity of these studies, Cassava has stated that all efficacy data remain blinded and that independent third-party firms will conduct the data analysis, with no involvement from Dr. Wang or his laboratory.

Lazarus Lucas is the Publisher, editor, and creator of LJLNews. Stock Market enthusiast, with an interest for politics. Independent trader, analyst, and asset manager. Lazarus publishes articles on LJLNews with technical analysis on various markets, such as currencies, stocks, and commodities. Contact: Lazaruslucas@ljlnews.com

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