Cassava: An Attractive Value Proposition


Let’s rewind back to the start of last year, to a period when Cassava Sciences (SAVA) shares began their ascent to a higher place; investors had evidently cottoned on to the potential of the company’s prospective Alzheimer’s disease (AD) treatment simufilam. In clinical studies, the drug demonstrated an ability to improve patients’ cognitive behaviour after 6 months, 9 months and then 12 months of therapy, a feat no other AD drug had achieved before.

However, the company’s reputation has been tarnished following accusations its data gathering methods were unsound with the results’ credibility called into question. Following which, the market ate up a good deal of the share gains.

Meanwhile, late last year the company initiated two Phase 3 clinical trials assessing simufilam’s safety and efficacy profile; patients are receiving different oral doses of the drug over a period of at least 52 weeks.

The company might be a controversy magnet but after holding a recent 1×1 virtual meeting with Cassava’s management, H.C. Wainwright analyst Vernon Bernardino came away “confident in the company’s ability to navigate controversy and advance simufilam through Phase 3 studies in Alzheimer’s disease (AD).” The analyst reckons the drug has “strong prospects for success.”

While patient recruitment has been affected due to Omicron-related staffing issues at clinical trial sites, based on health data following Omicron’s peak in South Africa, the company believes that recruitment “should not be affected” much longer.

Furthermore, Bernardino notes that AD patients have shown “high interest” in participating in the study and with the opportunity to enroll their AD patients, so have neurologists.

Bernardino counts further progress with Phase 3 study enrolment, along with updates on the open-label and cognitive maintenance studies with simufilam as “positive catalysts in 2022.”

With the shares having pulled back significantly since July 2021’s highs, the 5-star analyst thinks SAVA stock “represents an attractive value proposition.”

As such, Bernardino reiterated a Buy rating on the stock, backed by a $124 price target. The implication for investors? Upside of a handsome 155%. (To watch Bernardino’s track record, click here)

Three other analysts have reviewed Cassava’s prospects over the past 3 months, and all are positive, providing the stock with a Strong Buy consensus rating. Moreover, Bernardino’s price target is one of the more conservative ones; the average target stands at $159.25 suggesting shares will soar by 227% in the year ahead. (See SAVA 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.



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