Cassava Sciences Cooperates With DOJ, SEC On Controversial Alzheimer's Drug Investigation
Portfolio Pulse from Vandana Singh
Cassava Sciences (NASDAQ:SAVA) is cooperating with the DOJ and SEC amid investigations into its Alzheimer's drug, simufilam. The DOJ indicted Dr. Hoau-Yan Wang for fraudulent grant applications and manipulating research results. Cassava's internal investigation revealed potential unblinding of Phase 2b study participants. Despite the controversy, Cassava is proceeding with two Phase 3 clinical trials.
July 01, 2024 | 3:19 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Cassava Sciences is cooperating with the DOJ and SEC amid investigations into its Alzheimer's drug, simufilam. The DOJ indicted Dr. Hoau-Yan Wang for fraudulent grant applications and manipulating research results. Cassava's internal investigation revealed potential unblinding of Phase 2b study participants. Despite the controversy, Cassava is proceeding with two Phase 3 clinical trials.
The ongoing investigations and indictment of a former collaborator for fraudulent activities are likely to negatively impact investor sentiment. The potential unblinding of study participants further adds to the controversy. Despite the company proceeding with Phase 3 trials, the immediate market reaction has been negative, as evidenced by the 7.69% drop in share price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100