Could Cassava Sciences Be a Millionaire-Maker Stock?
Cassava Sciences (NASDAQ: SAVA) has been one of the top-performing biotech stocks of the past 12 months, rising over 3,210% in that time. That would have turned an investment of $10,000 last June into $331,000 and counting.
Much of the hype surrounding Cassava lies in its flagship drug candidate, simufilam, which is currently under investigation to treat Alzheimer's disease. Large-cap biotech Biogen (NASDAQ: BIIB) recently advanced its own Alzheimer's drug, Aduhelm, past regulatory hurdles despite questionable efficacy data. That drug costs $56,000 per year. With the bar set low and the potential payoff from commercialization extremely high, interest in biotechs treating Alzheimer's has been soaring.
Meanwhile, Cassava is phase 3 funded, with $280 million cash on its balance sheet and no debt. It anticipates using just $22.5 million in cash this year as it kick-starts its investigation. So should you invest in the company in hopes of clinical trial success?
Source Fool.com
