Cassava Gets Called Out

This Summer, the FDA approved the first Alzheimer’s drug in nearly two decades. However, its approval came with controversy rather than cheers. 📣

Scientists and doctors echoed concerns about Aduhelm. The FDA ultimately barreled ahead to approve the drug. It came with one big condition: the drug’s maker, Biogen, will have to conduct more studies to prove the efficacy. However, in the meantime, they can sell Aduhelm.

And for the 5.8 million Americans with Alzheimer’s disease, that drug will come with a steep price: $56,000 per person, per year.

In effect, patients might be paying for a drug that doesn’t work. But patients, doctors, and families have been left with few options. There are few diseases to treat or slow the progression of neurodegenerative diseases such as Alzheimer’s. The companies that trial drugs in this space seldom succeed. But when they do, they win big. 🎰🎰🎰

That’s one reason why investors have thrown cash at a lesser-known biotech called Cassava Sciences. $SAVA has become an optimistic trade for investors because it’s trialing a drug for Alzheimer’s disease called simufilam. The drug’s open-label study reportedly showed that it stopped and reversed progression of the disease

But this week, $SAVA plunged 44.9%. A citizen petition filed in New York alleges that Cassava used “data manipulation and biomedical image manipulation in prior studies.” The company deflected, indicating that its data was prepared by a third-party. That third-party ultimately denied the claims.

At this point, the FDA has not commented on whether or not it will halt the company’s ongoing late-stage study. However, it echoes the very-real FUD in this space. We’ll be tracking $SAVA‘s story. 👀

Biotech Buyout Spree Continues

It may be the last week of the year, but many companies are rushing to get deals done before year-end. Two significant transactions in the biotech space were announced today, so let’s dive in. 👇

The first deal involves RayzeBio, which raised $358 million via an initial public offering (IPO) just three months ago. However, its time as a public company is being cut short by Bristol Myers Squibb, which is acquiring the radiopharmaceutical therapeutics company for $62.50 per share in cash. 💰

Read It

Japan’s Nippon Takes Over U.S. Steel

After months of bidding, U.S. Steel finally has a buyer. However, the auction’s winner has some parties concerned. 🤔

Japan’s Nippon Steel emerged as the top bidder for the 122-year-old steelmaker, beating out offers from Cleveland-Cliffs, ArcelorMittal, and Nucor. Its $55 per share price represents a 142% premium to where $X shares were trading before Cleveland-Cliffs’ $35-per-share offer kicked off the bidding war.

Read It

$LUNR Reaches A “Tipping Point”

One of the top stories in the market over the last 24 hours has been Intuitive Machines’, which trades under the ticker symbol $LUNR. 📻

The space exploration company’s Nova-C cargo moon lander known as “Odysseus” became the first privately developed spacecraft to land on the lunar surface. It was also the first U.S. spacecraft to soft-land on the moon in over 50 years. 🌝

Read It

Pfizer’s Flop Continues

It’s been a rough ride for pharmaceutical giant Pfizer since the end of the pandemic, and that rollercoaster ride continues today. 🎢

The company last announced earnings in October but needed to update Wall Street on its 2024 forecast. It cited weak demand for its Covid products as the reason for a weaker-than-anticipated revenue and earnings forecast.

Read It