Cassava: An Enticing Worth Proposition

Cassava: An Attractive Value Proposition


Let’s rewind again to the beginning of final 12 months, to a interval when Cassava Sciences (SAVA) shares started their ascent to the next place; buyers had evidently cottoned on to the potential of the corporate’s potential Alzheimer’s illness (AD) remedy simufilam. In medical research, the drug demonstrated a capability to enhance sufferers’ cognitive behaviour after 6 months, 9 months after which 12 months of remedy, a feat no different AD drug had achieved earlier than.

Nevertheless, the corporate’s fame has been tarnished following accusations its information gathering strategies have been unsound with the outcomes’ credibility referred to as into query. Following which, the market ate up a great deal of the share features.

In the meantime, late final 12 months the corporate initiated two Part 3 medical trials assessing simufilam’s security and efficacy profile; sufferers are receiving totally different oral doses of the drug over a interval of no less than 52 weeks.

The corporate is likely to be an argument magnet however after holding a latest 1×1 digital assembly with Cassava’s administration, H.C. Wainwright analyst Vernon Bernardino got here away “assured within the firm’s capability to navigate controversy and advance simufilam via Part 3 research in Alzheimer’s illness (AD).” The analyst reckons the drug has “robust prospects for fulfillment.”

Whereas affected person recruitment has been affected on account of Omicron-related staffing points at medical trial websites, based mostly on well being information following Omicron’s peak in South Africa, the corporate believes that recruitment “shouldn’t be affected” for much longer.

Moreover, Bernardino notes that AD sufferers have proven “excessive curiosity” in collaborating within the examine and with the chance to enroll their AD sufferers, so have neurologists.

Bernardino counts additional progress with Part 3 examine enrolment, together with updates on the open-label and cognitive upkeep research with simufilam as “optimistic catalysts in 2022.”

With the shares having pulled again considerably since July 2021’s highs, the 5-star analyst thinks SAVA inventory “represents a lovely worth proposition.”

As such, Bernardino reiterated a Purchase score on the inventory, backed by a $124 value goal. The implication for buyers? Upside of a good-looking 155%. (To look at Bernardino’s monitor document, click here)

Three different analysts have reviewed Cassava’s prospects over the previous 3 months, and all are optimistic, offering the inventory with a Sturdy Purchase consensus score. Furthermore, Bernardino’s value goal is likely one of the extra conservative ones; the common goal stands at $159.25 suggesting shares will soar by 227% within the 12 months forward. (See SAVA stock forecast on TipRanks)

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Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is extremely essential to do your individual evaluation earlier than making any funding.



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