Cassava: An Attractive Value Proposition

1 year ago 344
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Let’s rewind backmost to the commencement of past year, to a play erstwhile Cassava Sciences (SAVA) shares began their ascent to a higher place; investors had evidently cottoned connected to the imaginable of the company’s prospective Alzheimer’s illness (AD) attraction simufilam. In objective studies, the cause demonstrated an quality to amended patients’ cognitive behaviour aft 6 months, 9 months and past 12 months of therapy, a feat nary different AD cause had achieved before.

However, the company’s estimation has been tarnished pursuing accusations its information gathering methods were unsound with the results’ credibility called into question. Following which, the marketplace ate up a bully woody of the stock gains.

Meanwhile, precocious past twelvemonth the institution initiated 2 Phase 3 objective trials assessing simufilam’s information and efficacy profile; patients are receiving antithetic oral doses of the cause implicit a play of astatine slightest 52 weeks.

The institution mightiness beryllium a contention magnet but aft holding a caller 1x1 virtual gathering with Cassava’s management, H.C. Wainwright expert Vernon Bernardino came distant “confident successful the company's quality to navigate contention and beforehand simufilam done Phase 3 studies successful Alzheimer’s illness (AD).” The expert reckons the cause has “strong prospects for success.”

While diligent recruitment has been affected owed to Omicron-related staffing issues astatine objective proceedings sites, based connected wellness information pursuing Omicron’s highest successful South Africa, the institution believes that recruitment “should not beryllium affected” overmuch longer.

Furthermore, Bernardino notes that AD patients person shown “high interest” successful participating successful the survey and with the accidental to enroll their AD patients, truthful person neurologists.

Bernardino counts further advancement with Phase 3 survey enrolment, on with updates connected the open-label and cognitive attraction studies with simufilam arsenic “positive catalysts successful 2022.”

With the shares having pulled backmost importantly since July 2021’s highs, the 5-star expert thinks SAVA banal “represents an charismatic worth proposition.”

As such, Bernardino reiterated a Buy standing connected the stock, backed by a $124 terms target. The accusation for investors? Upside of a handsome 155%. (To ticker Bernardino’s way record, click here)

Three different analysts person reviewed Cassava’s prospects implicit the past 3 months, and each are positive, providing the banal with a Strong Buy statement rating. Moreover, Bernardino’s terms people is 1 of the much blimpish ones; the mean people stands astatine $159.25 suggesting shares volition soar by 227% successful the twelvemonth ahead. (See SAVA banal forecast connected TipRanks)

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Disclaimer: The opinions expressed successful this nonfiction are solely those of the featured analyst. The contented is intended to beryllium utilized for informational purposes only. It is precise important to bash your ain investigation earlier making immoderate investment.

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