There’s trouble for Cassava Sciences (NASDAQ:SAVA) as the stock plunged in Tuesday afternoon’s trading. The drop hit after Cassava released top-line data on its recent Phase 2 studies for its latest Alzheimer’s drug candidate. Investors did not take the new data well, and abandoned the stock in sizable numbers.
The drug in question, simufilam, is an orally-delivered drug designed to treat Alzheimer’s. The problem is that, according to the Phase 2 study, it really didn’t. At least, not by much. Reports from the company noted that there was a minimal change in cognitive testing, as based on the ADAS-Cog study. For patients on the medication for a full year, 47% saw a 4.7-point improvement in their ADAS-Cog scores. Meanwhile, 23% saw a decline of less than five points.
Essentially, what Cassava Sciences found is that simufilam is better with mild cases of Alzheimer’s than moderate to severe cases. The mild group showed an improvement in ADAS-Cog scores, while those with moderate Alzheimer’s saw a decline. Cassava also found that the drug was both safe and well-tolerated. The biggest reasons patients stopped the treatments were consent withdrawals, patient non-compliance, and adverse events. The three biggest adverse events were headaches, urinary tract infections, and COVID-19.
Until the latest top-line data emerged, Cassava stock was gaining steam. The last five trading days show a slow rise, generally in a stair-step pattern until today’s top-line data release, where the stock plunges.
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