4:51:06 PM PDT - Sunday, September 27th, 2020

This Biotech Stock Moves One Step Closer to an Alzheimer’s Drug; Analyst Says ‘Buy’  

By Editor - Wed Sep 16, 1:07 pm

In the biotechnology world, clinical data readouts are make-or-break. Release favorable results, and rewards in the form of sky-high gains could be on tap, but if the data misses the mark, shares could also be catapulted, only in the opposite direction.Cassava Sciences (SAVA) is a prime example of the former. On Monday, the company published the final results from the Phase 2b study of sumifilam (PTI-125), its small molecule drug that targets an altered form of filamin A (FLNA), in mild-moderate Alzheimer's disease (AD). The data demonstrated statistically significant improvements in biomarkers of disease and cognition. In response, shares rounded out the day’s session up 133%.Back in May, analysis of the data failed to show statistical significance. However, 5-star analyst Jason McCarthy, of Maxim Group, points out that “it was unclear at the time if there were anomalies in the data, particularly in the placebo group which caused the miss.” The reanalysis, which showed the therapy did in fact have a meaningful impact on the biomarkers associated with the disease, was in-line with what had been observed in the prior Phase 2a study.Looking at the Phase 2a study, patients achieved a 100% responder rate with statistically significant decreases across key biomarkers. This included a 20% reduction in total tau, 34% in phosphorylated tau and 22% in Neurofilament light chain, among others

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This Biotech Stock Moves One Step Closer to an Alzheimer’s Drug; Analyst Says ‘Buy’

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