In today’s mixed session, there are plenty of stocks making big moves. Among the biggest movers in this afternoon’s session is Cassava Sciences (NASDAQ:SAVA). Currently, SAVA stock has surged more than 12% in today’s session, though this stock was actually more than 17% higher intraday on some big news.
Interestingly, this news has little to do with Cassava’s core business. Rather, a competitor in the race to develop an Alzheimer’s treatment, Roche (OTCMKTS:RHHBY), reported disappointing results for its Phase 3 trial of its gantenerumab candidate. This announcement paves the way for Cassava, with its Phase 3 candidate simufilam, to potentially take a bigger piece of what could be a massive potential market.
Indeed, one company’s loss can be another’s gain. Let’s dive into what this news means for SAVA stock moving forward.
Why Is SAVA Stock Soaring Today?
Cassava is certainly among the higher-risk, higher-upside picks in the biotech world. Any company that’s working on a potentially game-changing drug is likely to see volatility over time.
That said, today’s move in SAVA stock appears to make sense. The Alzheimer’s market is one that’s potentially massive, and it is starting to see big breakthroughs. If Cassava can prove strong efficacy with its simufilam candidate, there’s plenty of potential upside with this company.
Of course, Cassava isn’t the only up-and-coming player in this space. Pharma giant Biogen (NASDAQ:BIIB) is also in the race to develop a drug to treat this terrible disease. Accordingly, it’s unclear how much of the potential future market Cassava will be able to take, if its drug is even approved.
That being said, today’s news certainly bolsters the company’s market position. Moving forward, Cassava Sciences will be an interesting stock to watch.
On the date of publication, Chris MacDonald 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.