Investors may want to use weakness in Alzheimer’s stocks as opportunity, we said on August 2.
Those included Cassava Sciences (SAVA), which gapped from $144.63 to $81, and Anavex Life Sciences (AVXL), which fell from about $22 to $18. All after Annovis Bio (ANVS) gapped lower from $109.44 to less than $40 on disappointing data with its Alzheimer’s candidate.
Two days after noting that, Cassava Sciences is back to $87 a share, for example.
Helping, B. Riley just raised its price target to $145 from $111, and reiterated its buy rating.
“With $280M of cash on the balance sheet, management reaffirmed there being no immediate need for a capital raise,” said the firm, as noted by TheFly.com. “The analyst believes perception of a possible raise incrementally contributed to the selloff in the shares following the compelling positive biomarker and cognition efficacy data from the Phase II open-label trial for Cassava’s lead candidate, simufilam, in mild-to-moderate Alzheimer’s disease.”
Even better, B. Riley also believes Cassava’s data represents a “home run scenario.”
All after the company noted:
“In a clinical study funded by the National Institutes of Health (NIH), simufilam significantly improved cognition in Alzheimer’s patients, with no safety issues. Simufilam improved cognition scores 3.0 points on ADAS-Cog11, an 18% mean improvement, baseline to month 9 (p<0.001). This interim analysis summarizes clinical data from the first 50 patients with mild-to-moderate Alzheimer’s disease who completed 9 months of open-label simufilam treatment. Cassava Sciences believes today’s data is the first report of significant cognitive improvements at 9 months that also track with robust improvements in biomarkers in patients with Alzheimer’s.”
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