The biotech world — and especially retail investors who follow it — has been closely tracking Cassava Sciences (NASDAQ:SAVA) in recent weeks. This comes as its Alzheimer’s drug Simufilam continues to generate positive news. Today is no different, as SAVA stock closed higher by more than 25%. So what do you need to know now?
According to InvestorPlace contributor Larry Ramer, the stock could easily rise much higher.
Ramer recently argued that SAVA stock was undervalued and, according to his calculations, could rise by as much as 200% if the drug receives U.S. Food and Drug Administration approval. Fellow contributor Thomas Niel similarly urged investors to buy shares on a dip ahead of the end of its Phase 3 trial.
What else should investors know about this stock? Let’s find out.
What to Know About SAVA Stock
- Based in Austin, Texas, Cassava is a clinical-stage biopharmaceutical company with a focus on neuroscience. Its website states that its mission is to “detect and treat Alzheimer’s disease.”
- Unlike some competitors, Cassava’s approach to treating Alzheimer’s is not based on clearing the brain of amyloid (an abnormal protein), but rather focuses on the stabilization of filamin A, a scaffolding protein.
- The company acknowledges that it is unlikely that any drug will successfully cure Alzheimer’s on its own. It has been working with The National Institutes of Health (NIH), which have provided scientific and financial support throughout its research process.
- Collectively, the members of Cassava’s management team has achieved 12 FDA drug approvals before entering their current roles. Remi Barbier, Cassava’s founder who now serves as chairman of the board, president and CEO, helped build Exelixis (NASADQ:EXEL) and ArQule.
- Many research labs spanning both the U.S. and Canada are currently participating in Simufilam’s open-label extension program.
- February 2021 brought the results of an interim clinical analysis, showing a 29% improvement in the behavior of patients with conditions related to dementia, including anxiety and agitation. The interim analysis also found a 10% improvement in cognition scores over a six-month period.
- Nine months into the study, Cassava announced positive results regarding Simufilam’s development, stating that the drug improved cognition scores by 18% in Alzheimer’s patients and that there had been no safety issues.
- In August 2021, a petition was filed with the FDA that called into question the scientific integrity of Cassava’s clinical trials. Barbier denied all accusations, but news of the petition was enough to send SAVA stock into decline.
On the date of publication, Samuel O’Brient 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.