Cassava Sciences disappointed investors Tuesday with midstage results for its oral Alzheimer's treatment and SAVA stock plummeted by a double-digit percentage.
The company enrolled more than 200 patients with mild to moderate Alzheimer's disease in a midstage study of its experimental pill, simufilam. Patients took two doses a day for a year and, on average, their symptoms were "minimally changed."
Cassava says when symptoms change minimally or improve over a year that "is a highly desirable outcome" in this patient population.
But the results paled in comparison to earlier reports from Cassava, and SAVA stock plunged 19.2% and closed at 29.44 on the stock market today.
SAVA Stock: Some Patients Improve
The results are from Cassava's open-label study, meaning patients knew they were taking the test drug.
Cassava says 47% of patients who reached the one-year mark showed improvements in their symptoms, as measured by the Alzheimer's Disease Assessment Scale-Cognitive Subscale. Of those patients, they showed an average 4.7-point improvement on a 70-point scale.
Another 23% of patients declined less than 5 points over the year. These patients declined by 2.5 points on average.
But in September 2021, the company unveiled the results for the first 50 patients. Of those, 68% showed an improvement on the same scale. On average, they had a 6.8-point improvement. Last August, Cassava had results for the first 100 patients. In that group, 63% improved by an average 5.6 points.
In the first 50 patients, scores improved by 3.2 points. Among the first 100 patients, that dropped to a 1.5-point improvement. In the new release, Cassava noted the total scores declined by 0.5 points across all patients. That likely hammered SAVA stock.
Mixed Results In Mild, Moderate Groups
It's important to note, the results were mixed between mild and moderate patients. Scores of symptoms improved by 2.4 points in mild patients. In moderate patients, the scores worsened by 4.4 points.
The Alzheimer's treatment was safe and well tolerated, Cassava said. There were no drug-related serious side effects.
"I am very excited about these one-year data," Cassava Chief Executive Remi Barbier said in a written statement. "They add strength and determination to our goal of helping people fight Alzheimer's disease."
Before Tuesday's release, SAVA stock was forming a double-bottom base with a buy point at 45.53, according to MarketSmith.com. Shares tumbled below that chart pattern after Cassava posted the results.
Still, Cassava stock has a strong Relative Strength Rating of 93 out of a best-possible 99, IBD Digital shows. This puts SAVA stock in the leading 7% of all stocks in terms of 12-month performance.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
