On Aug. 25, shares of Alzheimer’s biotech Cassava Sciences (NASDAQ:SAVA) fell by more than 30% before recouping some of their losses. Investors had come across a citizen petition to the U.S. Food and Drug Administration (FDA) by New York-based securities litigation firm Labaton Sucharow calling for a clinical trial halt of the company’s phase 3 study for its lead Alzheimer’s drug, simufilam. Labaton Sucharow filed the petition on Aug. 18, and the FDA acknowledged the reports in the petition on Aug. 23.
There’s clearly a lot on the line for patients and investors alike. So what went wrong with Cassava to attract such rigorous skepticism on simufilam?