Cassava Sciences (SAVA) hogged the headlines last year both for good and bad reasons. The company’s Alzheimer’s disease (AD) candidate simufilam showed exceptional results in clinical trials – after 6 months, 9 months, and a 12-month analysis following treatment, patients’ cognitive behavior improved – impressing in what has always been a notoriously difficult to treat condition. But then the tables turned on the company, as accusations of data manipulation and unsound practices were made.
So, where is the company at right now? Given the company initiated two separate Phase 3 studies of simufilam (RETHINK-ALZ and REFOCUS-ALZ), H.C. Wainwright’s 5-star analyst Vernon Bernardino believes 2021 “ended strong.”
“With independent third-party confirmation by the prestigious journal, Neuroscience, that there was no evidence of data manipulation we believe the overhang that doggedly impacted Cassava stock in 2021, which at one point cast doubt whether the company would be able to initiate Phase 3 studies, is now past,” the analyst went on to say. As such, Bernardino thinks “strong integrity exists” in the simufilam data.
Now the company must meet the challenges ahead. The two Phase 3 studies are “complex” and Cassava is targeting the enrollment of more than 1,700 AD patients. Simufilam has already been shipped to almost 100 clinical trial sites across North America, and 200 patients have so far been screened. With Covid’s impact waning, Bernardino is positive the company can complete enrollment in the year’s second half.
“We believe announcement of completion of enrollment in the first of two studies in 3Q22 could be a positive catalyst, followed shortly be completion of enrollment in the second study by YE22,” the analyst further said.
So, good for Cassava, but what are the implications for investors? Bernardino reiterated a Buy rating, backed by a $124 price target. This suggests shares will soar ~209% over the coming year. (To watch Bernardino’s track record, click here)
Bernardino’s objective might be the Street’s highest but other analysts aren’t shy with their projections either; the average target stands at $121.50, providing room for shares gains of ~202%. What’s more, all 4 reviews on record are positive, making the consensus view on this stock a Strong Buy. (See Cassava stock forecast on TipRanks)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
