'Pharma Bro' Martin Shkreli Tells Investors To 'Short SAVA,' Stock Falls Over 80% After Phase 3 Update

Core Viewpoint - Cassava Sciences' stock experienced a significant decline after the company announced that its Phase 3 trial results for Simufilam, a treatment for Alzheimer's disease, did not meet primary endpoints, leading to a drop of over 80% in share price [2][8][16]. Company Update - Cassava Sciences reported that the topline results from the ReThink-ALZ study indicated that Simufilam did not show a significant reduction in cognitive or functional decline compared to placebo in patients with mild-to-moderate Alzheimer's disease [2][3]. - The CEO of Cassava Sciences, Rick Barry, described the trial results as "disappointing for patients and their families" [4]. Market Reaction - Following the announcement, shares of Cassava Sciences fell by 84.6%, trading at $4.06, marking a new 52-week low, with the previous trading range being $8.79 to $42.20 [16]. - Martin Shkreli, a notable figure in the pharmaceutical industry, had predicted the stock's decline and suggested that the stock could trade near its cash value levels of $2 to $3 per share [11][12]. Predictions and Commentary - Shkreli expressed confidence that the failure to meet the primary endpoint would make the stock an "easy short" and criticized the speculative nature of some investors in Cassava Sciences [10][11]. - Citron Research supported Shkreli's prediction, highlighting the challenges of shorting stocks like Cassava Sciences, which they described as having been a "clear fraud for years" [15].