Cassava Stock Plunges as Alzheimer's Drug Fails Late-Stage Study

Core Insights - Cassava Sciences shares are experiencing a significant decline, dropping 80% in premarket trading after the failure of its experimental drug Simufilam in a late-stage trial for Alzheimer's disease [2][7] - The drug did not demonstrate a significant reduction in cognitive or functional decline in patients with mild-to-moderate Alzheimer's, which is the most common cause of dementia [2][4] - The company plans to discontinue another late-stage study and an open-label study of Simufilam following the trial's failure [5] Company Actions - CEO Rick Barry expressed disappointment regarding the trial results, highlighting the impact on patients and families seeking new treatment options [3] - The company had previously agreed to a $40 million settlement with the SEC over allegations of manipulating clinical trial data related to Simufilam [6] Market Impact - The sharp decline in share price has reduced the year-to-date gain for Cassava Sciences to approximately 18% [7]