Vernon Bernardino, an analyst from H.C. Wainwright, reiterated the Hold rating on Cassava Sciences (SAVA – Research Report). The associated price target is $2.00.
Vernon Bernardino has given his Hold rating due to a combination of factors surrounding Cassava Sciences’ recent clinical trial outcomes and financial projections. The company’s simufilam drug, aimed at treating mild-to-moderate Alzheimer’s disease, failed to meet the primary, secondary, and exploratory endpoints in both the 76-week ReFocus-ALZ and the 52-week ReThink-ALZ Phase 3 trials. This has led to the conclusion that simufilam is unlikely to succeed as an Alzheimer’s treatment, prompting Cassava to plan the discontinuation of its development program for this indication by the second quarter of 2025.
Despite the potential for simufilam to be repurposed for other conditions, such as tuberous sclerosis complex-associated epilepsy, the program is still in its early stages, making it difficult to assign any current value. Financially, Cassava Sciences ended 2024 with $128.6 million in cash, and the anticipated reduction in cash burn following the discontinuation of the Alzheimer’s program could result in a year-end cash balance of approximately $93 million. Given these considerations, Bernardino maintains a Neutral rating with a price target of $2.00, reflecting the uncertainties and risks associated with the company’s future prospects.