Investors may want to keep an eye on oversold shares of Cassava Sciences (NASDAQ:SAVA). Even with the broader market down 500 points on the day, shares of SAVA are up 5% on a volume spike to 3.48 million shares. The daily average volume is 1.71 million. This is all as excitement is building over its Alzheimer’s drug, Simufilam. In fact, at the moment, Cassava Sciences has two Phase 3 trials under special protocol assessments with the U.S. Food and Drug Administration (FDA). One was initiated in November 2021 to evaluate the safety and efficacy of the drug over 78 weeks with about 1,000 patients in the U.S. and in Canada.
Remi Barbier is Still Bullish
In addition, the company’s President and Chief Executive Officer Remi Barbier is still bullish. In a company press release, Barbier stated:
“Alzheimer’s disease isn’t going away anytime soon, and neither are we. […] Developing a new drug solution for Alzheimer’s is a daunting task during the best of times. During these times of outlandish allegations made against us by short sellers, we stand committed to translate what we believe is a promising scientific breakthrough into a potentially meaningful treatment for people with Alzheimer’s disease. The rest is noise.”
If the company can get a positive nod from the FDA, the news could be a game-changer for the millions of Americans living with Alzheimer’s disease. Right now, about 6.5 million Americans are coping with the disease, says the Alzheimer’s Association. Of that number, it is estimated that 50.4% have a mild form of the disease, says the National Institute of Aging.
B. Riley Reiterated a Buy on Cassava Sciences
Additionally, B. Riley (NASDAQ:RILY) analyst Mayank Mamtani just reiterated a buy rating on the stock with a price target of $72. As noted by TheFly.com, the analyst “continues to like Cassava’s risk/reward heading into the second half of 2022 data readouts relating to simufilam’s treatment effect on cognition and biomarkers. These could potentially de-risk the placebo-controlled readouts anticipated in the first half of 2023.”
At the moment, shares of SAVA are oversold at $21.22. The stock is also oversold on the Relative Strength Index, moving average convergence divergence, an on Williams’ %R. From its current price, I’d like to see SAVA stock run back to $40 again, near-term. Then, should the company get a positive nod for its Alzheimer’s treatment, SAVA could potentially see $140 again in the longer-term.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.