Cassava Sciences Stock Jumps After CEO’s Update On Alzheimer’s Drug Trial: Retail Sentiment Wavers

Shares of Cassava Sciences, Inc. (SAVA), a small-cap biotech firm, rose more than 5% on Tuesday after the company’s CEO, Rick Barry, provided an update on its Alzheimer’s drug trial via a regulatory 8-K filing.

Barry announced that the ReTHINK Phase 3 clinical trial recently completed its final patient visit, marking a significant milestone in the development of Simufilam, a drug targeting a unique protein misfolding pathway associated with Alzheimer’s disease.

Unlike traditional therapies that focus on amyloid plaques, Simufilam aims to correct the shape of the protein Filamin A, potentially addressing various Alzheimer’s disease processes.

The ReTHINK trial enrolled 804 patients across 77 sites in the U.S., Puerto Rico, Canada, and Australia, with participants randomized between placebo and simufilam (100 mg twice daily). Approximately 70% of patients entered the study with mild Alzheimer’s, while the remaining 30% had moderate Alzheimer’s.

Barry stated, “We expect to announce top-line results of the ReTHINK trial before year-end.” He mentioned that the proposed Statistical Analysis Plan was submitted to the FDA in July and is currently under review.

Despite the positive news, retail sentiment on Stocktwits shifted from ‘bullish’ to ‘neutral’ after the update as of 1:00 pm ET. Cassava stock was the top trending ticker at 12:30 pm ET on Tuesday.

The company had recently reached a $40 million settlement with the U.S. Securities and Exchange Commission (SEC) related to misleading claims about its Alzheimer’s drug trials, which had drawn considerable attention from retail investors.

Following the CEO’s update, H.C. Wainwright upgraded Cassava Sciences to ‘Buy’ from ‘Neutral’, raising its price target to $116.

The analyst believes the settlement has mitigated long-term challenges for the stock and anticipates a positive catalyst from the upcoming topline readout from the ReTHINK trial.

Year-to-date, SAVA stock has climbed over 18%.

For updates and corrections email newsroom@stocktwits.com

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