Shares of Cassava Sciences (NASDAQ: SAVA) were skyrocketing 29.6% higher as of 10:53 a.m. ET on Monday. The big gain came after executive chairman Rick Barry released an open letter to shareholders, employees, principal investigators, and patients.
Barry was appointed as Cassava’s executive chairman on July 17, 2024. He has served on the biopharmaceutical company’s board of directors since June 2021. Barry is leading Cassava as it searches for a new CEO following former CEO Remi Barbier’s resignation last week.
Why did investors like what Cassava’s new executive chairman said?
Perhaps more than anything, investors liked Barry’s optimistic yet candid tone in his open letter. He acknowledged skepticism about the company but emphasized Cassava’s positive phase 2 results for its experimental Alzheimer’s disease drug simufilam.
Importantly, Barry said Cassava plans to report results from its first phase 3 study of simufilam in December 2024. He added that a larger second late-stage study should wrap up by June 2025.
Is Cassava Sciences stock a buy after its rebound?
Despite the strong gains today, Cassava Sciences’ share price is still down more than 40% year to date. Is the beaten-down biotech stock a buy after its rebound? Only for aggressive investors willing to accept significant risk of loss. It’s too early to know if simufilam will perform well in phase 3 studies. But, as Barry said in his open letter, “it won’t be long until we find out.”
Should you invest $1,000 in Cassava Sciences right now?
Before you buy stock in Cassava Sciences, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cassava Sciences wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $722,626!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
See the 10 stocks »
*Stock Advisor returns as of July 22, 2024
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Why Cassava Sciences Stock Is Skyrocketing Today was originally published by The Motley Fool
Credit: Source link
