B. Riley analyst downgrades | In search of Alpha

B. Riley analyst Mayank Mamtani downgraded the biotechnology firm Cassava Sciences (SAVA) over restricted related information disclosures.

Mamtani lowered the corporate to Impartial from Purchase, with the worth goal maintained at $44.

The inventory was buying and selling ~9% down after the scores motion.

The corporate mentioned it enrolled over 650 sufferers in Part 3 program and new medical information for Alzheimer’s illness candidate Simufilam was anticipated, as a part of its Q3 outcomes.

In October, Cassava Sciences mentioned it has begun an open-label extension research of Simufilam that can final a yr.

In September, SAVA was buying and selling over five-month excessive on rising volumes. The rally coincided with two latest insider purchases, together with these from Administrators Sanford Robertson and Richard Barry.

The analyst believes latest non-material pipeline and company developments, together with as a part of the Q3 outcomes, “don’t essentially clarify” why shares have rallied.

Mamtani is inspired by the tempo of enrollment in Part 3 Alzheimer’s trials, however his thesis is adversely impacted by restricted obtainable information from the continuing Part 2 open-label research.

SAVA shares have misplaced ~40% of their worth within the final one yr, however gained ~78% of worth within the final six months. Here’s a have a look at the share value actions: