Cassava Sciences Stock Plummets After SEC Settlement and Q3 Financials

Cassava Sciences, Inc. (NASDAQ: SAVA), a clinical-stage biotechnology company focused on developing treatments for Alzheimer's disease, has seen significant volatility in its stock price following recent developments. On November 7, 2024, the company reported its Q3 2024 financial and operating results, which included a net loss of $17.66 million for the trailing twelve months.

The stock price has been under pressure after Cassava Sciences agreed to pay over $40 million to settle charges with the Securities and Exchange Commission (SEC) related to misleading statements about its Alzheimer’s drug, simufilam. This settlement led to a drop in the stock price by more than 10% in extended trading.

Despite the challenges, Cassava Sciences is moving forward with its clinical trials. The company’s lead therapeutic product candidate, simufilam, is currently in two Phase 3 clinical trials for the potential treatment of Alzheimer’s disease. Additionally, Cassava Sciences announced that it will hold a conference call and webcast on November 25, 2024, to provide a corporate update.

As of November 25, 2024, the stock price for Cassava Sciences stood at $26.48, down by 17.71% from the previous day. Analysts maintain a “Strong Buy” rating with a 12-month price target of $111.50, indicating significant potential upside despite current volatility.