Cassava Sciences (NASDAQ:SAVA) is a biotech company with an important goal: fighting Alzheimer’s disease. It has several treatments in development, but is SAVA stock worth adding to your portfolio?
Obviously, I want this company to succeed; I witnessed a family friend’s battle with Alzheimer’s disease, and I would love for Cassava to succeed in their battle against it. But a closer analysis of its fundamentals leaves me questioning SAVA stock’s surge of over 1,600% so far this year, much less its 3,600% gain in the last year.
Cassava asks a dramatic question on their website: “What if detecting Alzheimer’s was as simple as getting a blood test?” They promise that they’re working on this problem. A July press release mentioned positive developments for similar, the company’s drug for fighting Alzheimer disease. The press release described positive results for simufilam, Cassava’s investigational drug for Alzheimer’s treatment.
A clinical study showed the drug “significantly improved cognition in Alzheimer’s patients, with no safety issues. Simufilam improved cognition scores 3.0 points on ADAS-Cog11, an 18% mean improvement.”