Sometimes, financial traders might forget that Cassava Sciences (NASDAQ:SAVA) stock is, as the company’s name suggests, all about the science. That’s because the media will distract you with reports of data manipulation claims.
Don’t misunderstand – it’s important to know about these allegations. Yet, SAVA stock investors should keep their eyes on the prize, and that prize is a proposed Alzheimer’s disease treatment.
Cassava Sciences is an ambitious clinical-stage biotechnology company. It’s a tiny company with one primary product: an Alzheimer’s disease treatment candidate called simufilam.
| SAVA | Cassava Sciences | $35.82 |
SAVA Stock Is Volatile Due to Controversy
According to the Alzheimer’s Association, over 6 million Americans have Alzheimer’s disease, and this figure could increase to nearly 13 million by 2050. So, on the surface, it seems that everyone should be rooting for Cassava Sciences to succeed.
However, not everyone is rooting for the company and due to controversy, SAVA stock has had its fair share of ups and downs.
As President and CEO Remi Barbier explained in 2021, a New York law firm alleged that Cassava Sciences’ “science is improbable, unexpected and unique to Cassava Sciences, and therefore it’s all an elaborate fraud.”
The law firm also, according to Barbier, filed a Citizen’s Petition with the Food and Drug Administration (FDA) demanding a halt to Cassava’s simufilam clinical program. And, here’s a significant point: “Two days after issuing their report, the law firm disclosed that they represent clients who have a short position in Cassava stock.”
Don’t Ignore the Progress with Simufilam
At the same time, much of the media seemed to ignore Cassava’s progress with simufilam. Encouragingly, clinical test results have already demonstrated improvement in cognitive test scores in some patients treated with simufilam.
But of course, this doesn’t grab headlines like a legal controversy will. Some SAVA stock traders continued to worry about data manipulation allegations. There’s been good news to report on this front, however.
Specifically, there was a report from the Journal of Prevention of Alzheimer’s Disease. It found “no convincing evidence to support allegations of data manipulation,” according to Cassava Sciences’ press release.
Consider, then, that U.S. regulators might clear Cassava of these allegations at some point. If this happens, the SAVA stock price could move higher very quickly.
What You Can Do Now
Investing in Cassava Sciences does involve risk, so a “B” rating is appropriate. Understand that volatility is to be expected, and always maintain small position sizes. Moreover, it’s perfectly fine if you choose not to invest in Cassava Sciences.
That said, it’s also fine to consider owning a few shares of SAVA stock. While the financial press wrings its hands over data manipulation claims that might be false or exaggerated, Cassava Sciences is busy doing what it does best: pursue a treatment for Alzheimer’s disease.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.