Cassava Sciences(US:SAVA) Benzingaยท2024-09-27 12:28Core Viewpoint - Cassava Sciences Inc and its executives have agreed to pay over $40 million to resolve SEC charges related to misleading statements about the efficacy of their Alzheimer's drug, simufilam, during a Phase 2 trial [1][4]. Group 1: SEC Investigation Findings - The SEC's investigation revealed that Cassava disclosed manipulated data in September 2020, which falsely indicated significant improvements in Alzheimer's biomarkers such as total tau and phosphorylated tau [2]. - Dr. Hoau-Yan Wang, a consultant and co-developer of the drug, was found to have manipulated trial results by selecting a subset of patients based on unblinded data, creating an illusion of efficacy [2][3]. - Cassava and its executives misled investors by promoting the drug's cognitive benefits while failing to disclose that the complete dataset showed no measurable cognitive improvement [3]. Group 2: Settlement Details - As part of the settlement, Cassava will pay $40 million, while founder Remi Barbier and former Senior VP Lindsay Burns will pay $175,000 and $85,000, respectively [4]. - Barbier and Burns will be banned from serving as officers or directors for three and five years, respectively [4]. - Dr. Wang agreed to cease future violations and pay a $50,000 fine without admitting or denying the charges [4]. Group 3: Company Updates - CEO Rick Barry indicated that the company is in the final stages of testing simufilam, emphasizing significant financial and emotional stakes [5]. - Cassava Sciences recently completed its third interim safety review for simufilam, with the Data and Safety Monitoring Board recommending that both Phase 3 trials continue without changes [5]. Group 4: Stock Performance - Following the news, SAVA stock experienced a decline of 10.90%, trading at $28.40 during the premarket session [6].