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SAVA shares fall after dismissing new claims surrounding its data tampering case

Cassava Science (SAVA) denied reports Friday that it had received “a cease-and-desist letter” from US officials surrounding the investigation into its experimental Alzheimer’s drug – and SAVA shares fell.




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News continues a wild journey of Cassava. Last November, the Securities and Exchange Commission opened an investigation into Cassava’s simufilam research. Cassava is testing the drug on patients with Alzheimer’s disease. But the scientists – who also hold short positions in SAVA stock – claim that Cassava manipulated the images used to test the drug.

On Thursday, a widely circulated report showed that the SEC recommended closing the investigation. It carries Monday. Problem? Cassava said it has not received any updates from the agency.

“The Company cannot establish the legitimacy of communications circulating in the mass media, or elsewhere, intentionally sent from such a government agency upon request. public requests to access private records are made under the Freedom of Information Act,” Cassava said in a filing with the SEC. .

In response, SAVA stock fell 18% to 41.87 on stock market today. That reversed from a gain of nearly 36% on Thursday. Cassava did not respond to a request for comment.

SAVA stock: Stabilizing an important protein

Data manipulation claims have weighed on SAVA stock since last year. The scientists at the center of the allegations also asked the Food and Drug Administration to suspend Cassava’s studies. But the agency has refused to do so.

According to Cassava, simufilam works by stabilizing an abnormal protein in the brain.

Thursday’s news sent SAVA stock to its highest level since February. Stocks continue to climb higher recently main moving averagebased on MarketSmith.com. Despite Friday’s drop, the stock remains above the 50-day and 200-day lines.

SAVA stock also has a Relative Strength Rating is 97, an indicator of 12-month performance. The best performing stocks have an RS Rating of at least 80, according to IBD Digital.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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