Cassava Sciences (NASDAQ:SAVA) stock was hit hard after the market close yesterday following the publication of a Science article that released the details on a report published by the City University of New York (CUNY). The report accused Cassava collaborator and CUNY faculty member Hoau-Yan Wang of scientific misconduct, including image manipulation. Science received the report “from a person who requested anonymity because they are not authorized to share it.”
According to the report, CUNY’s investigative committee “found numerous signs” of image manipulation, such as in a paper published in the The Journal of Neuroscience in 2012. The investigative committee also believes that Lindsay Burns, Cassava’s Senior Vice President for Neuroscience, is primarily or partially responsible for some of the possible misconduct.
“The committee could not prove its suspicions, however, because Wang did not produce the original raw data,” said Science. “Instead, the panel says its finding of wrongdoing was based on ‘long-standing and egregious misconduct in data management and record keeping by Dr. Wang.'”
SAVA Stock: Cassava Sciences Addresses Leaked Report
Cassava responded to the article in prompt fashion, stating that the report was leaked to Science and that the short interest on SAVA stock had jumped 40% between June 30 and Sept. 29. The company also provided shareholders with a summary recounting events that occurred in 2021 regarding image manipulation and the short selling of its stock.
“In response to these allegations, CUNY initiated an internal investigation in Fall 2021. In 2022, Cassava Sciences filed a lawsuit against certain individuals who participated in the short-and-distort campaign, identifying over 1,000 false and defamatory statements,” said Cassava.
Cassava went on to explain that the report shows no hard evidence of image manipulation. Instead, the company believes that the report evidences the record-keeping failures of CUNY. Furthermore, the company provided a list of research done by scientists at other institutions excluding CUNY, such as the Cochin Institute, the University of Milan and Yale University.
“We remain confident in the underlying science for simufilam, our lead drug candidate,” said Cassava President and CEO Remi Barbier. “We intend to continue to translate our passion for science into a novel drug for people living with Alzheimer’s disease. Our Phase 3 clinical program continues.”
On the date of publication, Eddie Pan did not hold (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.
