Alzheimer’s disease is an awful disorder. Affecting more than 6 million people in the U.S., Alzheimer’s is the most common form of dementia. It’s as hard on its victims as it is their families. And that’s one reason why it’s really easy to root for Cassava Sciences (NASDAQ:SAVA) stock.
Cassava Sciences is on the forefront of Alzheimer’s research. It has scientific and financial support from the National Institutes of Health (NIH). And it’s making steady progress.
The company has two main product candidates. The first one, simufilam, is an oral drug candidate that is designed to treat Alzheimer’s. It has already shown positive, placebo-controlled results in Phase 2b testing and a Phase 3 study is planned for later this year.
The second candidate, SavaDx, is designed to potentially detect Alzheimer’s disease with a blood test. Cassava Sciences believes that high plasma levels of altered filamin A is a key indicator of Alzheimer’s. If SavaDx can successfully recognize Alzheimer’s in patients, it could lead to earlier treatment of symptoms. And that could mean a slower progression of the dementia that Alzheimer’s causes.
SAVA Stock at a Glance
SAVA stock has been one of the biggest winners so far in 2021. The stock is up 1,370% so far in 2021, and a whopping 2,985% in the last 12 months.
The stock made a huge move in January when it went from less than $20 to nearly $90 per share. And after pulling back to $32 in April, the stock jumped up again to nearly $130 before settling back to a little less than $100.
Cassava reported second quarter results on Aug. 3, in which it posted a net loss of $5.1 million, or 13 cents per share, versus a loss of $1.1 million or 5 cents per share in the same quarter a year ago.
The company said it used $7.4 million in net cash for operations during the first six months of the year. It anticipates using $20 million to $25 million for the full year, it said.
Meanwhile, the company reported having $278.3 million of cash and cash equivalents as of June 30, with no debt.
Recent Clinical Data
On July 29, Cassava Sciences announced the results of its 9-month study of simufilam. It was purportedly the first potential Alzheimer’s drug that shows positive cognitive improvement in patients after 9 months.
In short, the study showed that patients taking simufilam had an 18% average improvement from the study’s baseline. Patients who had mild-to-moderate Alzheimer’s showed less dementia-related behavior after being treated with the drug, the company said.
The study showed that 90% of patients saw a benefit from the drug, and 66% of them saw absolute improvement from the baseline in the study.
The dropout rate in the study was less than 10% as the drug caused no serious adverse effects in the study.
However, some skeptics are dismissing the results of Cassava Sciences’ study, saying that it was an open-label trial, which means that all the patients knew they were taking the drug rather than a placebo. The study also only involved 50 patients, which is a small sample size.
StatNews reported that critics of the study labeled the results as, “overblown, inappropriate, [and] uninterpretable.”
With that feedback in play, SAVA stock actually dropped 45% following the release of its study. But since then, Cassava Sciences is showing renewed strength to get back over $100 per share again.
The Bottom Line
There’s no sure thing when it comes to medical research. But Cassava Sciences’ two-pronged approach is showing promise. And it undoubtedly is one of the most significant forays into Alzheimer’s treatment in years. And the window of opportunity is huge, with 6.2 million people in the U.S. currently suffering from the degenerative disease.
Should the company strike gold with its research in Phase 3 trials, SAVA stock will surely continue to jump higher. SAVA stock gets a “B” rating and a buy recommendation in my Portfolio Grader.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Louis Navellier, who has been called “one of the most important money managers of our time,” has broken the silence in this shocking “tell all” video… exposing one of the most shocking events in our country’s history… and the one move every American needs to make today.
