Cassava Sciences (SAVA) is a excessive threat, excessive reward medical biotech firm; its flagship drug candidate is Simufilam — an Alzheimer’s drug — presently in Section 3 trials, explains Joe Cotton, editor of Cotton’s Technically Talking.
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What makes this inventory so fascinating is that Simufilam seems to enhance cognition in Alzheimer’s sufferers, not simply sluggish the development of the illness. That’s a extremely large deal. If it will get authorised, it might simply turn out to be a multi-billion greenback drug.
We now have been following the inventory for a while and on October 6, 2020 we gave it a Purchase Score at $9.32. Inside 10 months it reached $140 intraday, a achieve of 1400%. If Simufilam will get authorised, the inventory might go quite a bit larger. However understand that it is a one-drug firm, and the inventory might go all the way down to $1.00 if it fails to get the drug authorised.
In August of 2021, a legislation agency representing admitted brief sellers submitted a Citizen Petition to the U.S. Meals and Drug Administration requesting that Cassava’s medical trials of Simufilam be stopped, alleging, amongst different issues, information manipulation in scientific articles authored by Cassava scientists, together with a 2005 Neuroscience article.
Because of this, the inventory plummeted from $120 to $40. Neuroscience re-examined the unique information for the article and in December of 2021 said that they discovered no proof to help claims of information manipulation.
The claims, though apparently false, have forged a shadow over the inventory for a while. However now, the inventory is appearing effectively and we count on it to proceed strongly on an upward path. Listed below are catalysts for a continued upmove:
1) The corporate has a comparatively small quantity of shares excellent — solely 41.74 million shares, and a Float of solely 37.69 million shares. The inventory moved up $1.58 on quantity of only one.8 million shares on 12/8/22.
2) Moreover there are 9.33 million shares brief, equal to 24.66% of the Float, as of November 15, 2022 per Yahoo! Finance. That may be a very giant determine, making the inventory a first-rate candidate for a brief squeeze, which we imagine has simply begun.
3) The corporate has enrolled roughly 650 sufferers in two Section 3 research and plans to enroll a complete of 1,750 sufferers with mild-to-moderate Alzheimer’s illness within the 2 research of Simufilam. The outcomes of its ongoing Section 3 medical program are anticipated to return out in mid-2024.
4) The corporate introduced completion of drug administration in an open-label examine of Simufilam for about 200 sufferers designed to judge long-term drug safely and to measure cognitive adjustments over 12 months. The outcomes could also be introduced roughly yr finish 2022.
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5) Insiders apparently suppose Simufilam works, as a result of two Administrators spent their hard-earned money shopping for the inventory in August of 2022. Director Richard Barry purchased 36,159 shares @ $23.79 for a value of $860,223. And Director Sanford Robinson purchased 100,000 shares @ $20.69 for a complete of $2,069,000. When the administrators of an organization are shopping for their firm’s inventory it’s an enormous plus that conjures up confidence. We just like the inventory.
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