Cassava Sciences Stock Has Plenty of Momentum After Positive Clinical Data
Biotechnology company Cassava Sciences (NASDAQ:SAVA) has only two primary product candidates, but they’re highly significant. SAVA stock holders, like all biotech-sector investors, should stay informed on all clinical developments as they’re likely to influence the share price.
Cassava Sciences shares are particularly sensitive to news-related events. That’s not a bad thing, though, as the latest developments are unquestionably positive.
Momentum-focused traders should appreciate the upward trajectory of SAVA stock. Moreover, this is more than a typical meme stock because Cassava Sciences is a legitimate biotechnology business with data-driven results.
Ultimately, Cassava Sciences is on a mission to improve patients’ quality of life. Therefore, it’s a company that you can feel good about supporting with a long-term investment.
SAVA Stock at a Glance
First and foremost, let me say that SAVA stock isn’t a penny stock at all. The company’s market capitalization is $4 billion, and the share price is above $100.
That’s important to know because it can offer investors peace of mind. Higher-priced stocks representing bigger companies aren’t as prone to volatility, generally speaking (though there are always exceptions to these guidelines).
Back in January of this year, SAVA stock went on an eye-popping rocket ride as it ran from $18 to $87. It would be hard to prove that Reddit users were involved in this rally, but this is certainly a possibility.
The share price pulled back to $32 in April. However, the bulls were just taking a breather and re-loading for another big leg up.
And when I say “big,” I mean really big. Believe it or not, SAVA stock was all the way up to $128 by July 28.
Can the bulls keep the momentum going? That’s the billion-dollar question, but positive clinical data should keep the stock on a decidedly positive path.
Ready for the Next Phase
Cassava Sciences’ mission is simple: to defeat Alzheimer’s disease.
With scientific and financial support from the National Institutes of Health (NIH), Cassava Sciences is continuously battling against Alzheimer’s, which represents a woefully unmet medical need globally.
As I alluded to earlier, Cassava has two main product candidates. One is simufilam, which is designed to treat Alzheimer’s. The other is a blood-based investigational diagnostic known as SavaDx.
Simufilam has a number of advantages. It’s an oral drug candidate, so it’s relatively non-invasive.
Plus, it reduces both neuro-degeneration and neuro-inflammation. Furthermore, simufilam was shown in 2017 to be safe and well-tolerated in human volunteers.
Simufilam has already yielded positive, placebo-controlled Phase 2b results. As a result, Cassava Sciences is preparing simufilam for a Phase 3 study during 2021’s second half.
Targeting a Major Culprit
I haven’t said much about SavaDx yet, but this product candidate plays an important role for Cassava Sciences.
A major advantage of SavaDx is that it could potentially detect Alzheimer’s disease with just a simple blood test.
And in a recent announcement, it was revealed that SavaDx “was used to measure plasma levels of altered filamin A before and after simufilam treatment in patients with Alzheimer’s disease” during Cassava’s Phase 2b trial.
Cassava Sciences President and CEO Remi Barbier asserts that altered filamin A is “a major culprit in Alzheimer’s disease.”
SavaDx detected high plasma levels of altered filamin A in Alzheimer’s patients prior to simufilam treatment. After the treatment with simufilam, the altered filamin A levels dropped significantly.
After 28 days of treatment with simufilam, plasma levels of p-tau181 also dropped significantly in these same patients.
“We believe these data provide clear evidence that simufilam binds to and engages its intended target to produce treatment effects,” concluded Barbier.
The Takeaway
SAVA stock is a fast mover, no doubt about that. Fortunately, the movement has largely been to the upside.
Yet, investing in Cassava Sciences isn’t just about riding the share-price momentum.
There’s also hard science that could potentially change patients’ lives for the better — and this makes Cassava a biotech firm that investors can believe in.
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.
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