By Adriano Marchese
Cassava Sciences' shares fell sharply Tuesday morning after the company said it would discontinue the development of its Alzheimer's treatment after recent trials didn't meet any of their objectives.
Shares declined sharply, falling nearly 22% to $2.20.
The clinical-stage biotechnology company said that the third phase of its Refocus-ALZ study of simufilam didn't meet any of the primary endpoints, nor any secondary and exploratory biomarker endpoints.
Alzheimer's disease is a progressive brain disorder and is the leading cause of dementia. Symptoms include memory loss, decline in cognition and difficulty performing everyday tasks.
The two primary endpoints for the study were to see a change in cognition and function after a 76-week period, comparing each dose of simufilam to a placebo dose.
Cassava said that it will discontinue all efforts to develop simufilam and expects to phase out the program by the end of the second quarter. Still, the biotechnology company said it has begun preclinical studies to see if simufilam would be viable as a treatment for Tuberous Sclerosis Complex-related epilepsy.
TSC is a genetic disorder that can affect multiple organs in the body, including the brain, and epilepsy is one of the most common symptoms of the disorder.
Cassava's chief financial officer, Eric Schoen said that the company remains focused on the interests of its shareholders and said that the company is well-capitalized with about $128.6 million in cash and cash equivalents as of the end of 2024.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 25, 2025 10:15 ET (14:15 GMT)
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