Shares of Cassava Sciences (NASDAQ:SAVA) stock are getting crushed on Wednesday after some allegations have investors questioning one of the company’s therapeutics.
According to MarketWatch, the claims being made are related to “the ‘accuracy and integrity’ of trial data for [Cassava’s] treatment of Alzheimer’s disease, saying it believed the claims are ‘false and misleading.'” This news comes soon after the firm announced that it reached agreement with the U.S. Food and Drug Administration (FDA) under a Special Protocol Assessment (SPA) for “both of its pivotal Phase 3 studies of oral simufilam for the treatment of patients with Alzheimer’s disease.”
After this, a citizen petition was then published that the FDA stop the clinical studies of simufilam for a number of reasons. That being said, the government agency did in fact acknowledge this “statement of concern” and will look into the allegations.
In turn, Cassava Sciences responded to these claims earlier this morning — with a full list of “fact vs. fiction” statements from firm President and CEO Remi Barbier.
“As a science company, we champion facts that can be evaluated and verified,” Barber said. “This helps people make informed choices. It is important for stakeholders to separate fact from fiction, which is why we wish to address allegations head-on.”
SAVA stock was down more than 23% as of Wednesday afternoon.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Nick Clarkson is a web editor at InvestorPlace.
