Cassava Sciences: REFOCUS Unlikely To Save Simufilam, Careful Development Needed

Summary:

• Cassava Sciences’ phase 3 RETHINK study of simufilam in Alzheimer’s disease was not a success, and REFOCUS seems unlikely to succeed, with the company discontinuing the study early.
• SAVA is even discontinuing the open-label extension study of simufilam, which could further suggest the company is not upbeat about simufilam in Alzheimer’s disease.
• Adding a new drug to the pipeline is an option for the company. I don’t believe SAVA has shown the ability to make smart moves, however.

On November 25, a negative result from Cassava Sciences, Inc.’s (NASDAQ:SAVA) phase 3 RETHINK-ALZ study, of simufilam in Alzheimer’s disease, caused SAVA to drop over 80 percent. I wasn’t expecting simufilam to succeed, rating SAVA sell

Analyst’s Disclosure: I/we have a beneficial short position in the shares of SAVA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I own SAVA puts.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.