Why the Cassava Sciences Bears Are Wrong
The market's been in love with Cassava Sciences (NASDAQ: SAVA) all year, but it's definitely a rocky relationship. The stock soared from $8 a share back in January to $126 on Aug. 12. On Aug. 25, the stock dropped 30%, and as of publication, it's down more than 50% from its high, to $57 a share.
The cause of all this volatility is Cassava's new drug for Alzheimer's, simufilam, which is in clinical trials. So far, the phase 2 trials have caused a lot of excitement. And now we're seeing various bear attacks trying to drive the stock down after its huge surge.
What's the stock going to do next week? I have no idea. But I do have some strong opinions about the citizen petition filed with the U.S. Food and Drug Administration this week to stop the clinical trials of Cassava's drug, simufilam. Specifically: It's ridiculous. Whoever hired the attorney to file that citizen petition is motivated by financial reasons, and has no interest in helping people with Alzheimer's. Here's why I feel this way.
Source Fool.com
