Why Shares of Cassava Sciences Are Dropping Wednesday
Shares of Cassava Sciences (NASDAQ: SAVA) were down more than 14% as of 11:30 a.m. ET on Wednesday after the clinical-stage biotech company announced so-so results for an Alzheimer's disease therapy. The stock is down more than 28% so far this year.
Cassava said in a release on Wednesday that its therapy, Simufilam, slowed cognitive decline by 38% compared to a placebo after six months of phase 3 clinical trial testing on patients with mild to moderate Alzheimer's disease. That was a lower response rate than some other Alzheimer's disease therapies, including Donanemab from Eli Lilly. Simufilam is designed to fix misshapen proteins at the cellular level that can lead to Alzheimer's.
Cassava's stock, once more than $100 a share in 2021, has struggled after a short-seller's report calling into question the integrity of Cassava's science led to shareholder lawsuits and several government inquiries, which are ongoing. The company has responded with its own lawsuit against the short-sellers.
Source Fool.com
