Biopharmaceutical firm Cassava Sciences Inc. plunged 30% after a citizen petition was launched to seek a halt on its Alzheimer’s disease treatment trials, Bloomberg reported.
- Jordan Thomas of Labaton Sucharow, a former enforcement lawyer of the Securities and Exchange Commission, raised concerns over the integrity of the trial results and alleged signs of data manipulation.
- Cassava denied the allegations, as Chief Executive and Founder Remi Barbier said the company champions facts that can be evaluated and verified.
- The company in February said its simufilam tablet showed improvement in the reasoning and behavior of patients in a trial involving less than 100 patients. Its stock has rocketed over 1,080% so far this year.
- Analysts recommended a buy on Cassava shares, noting that the data has already been reviewed by the Food and Drug Administration. The analysts downplayed the citizen petition, saying these are usually linked to public endorsement or lack thereof of drug effects from experts and medical associations.
Cassava on Tuesday agreed with US regulators to expand its trial design expected within this year. SAVA is down 24.91%.