(WSJ) US Food and Drug Administration has declined a petition filed by short-sellers seeking to stop the clinical trials of Cassava Sciences Inc. Alzheimer drug.
Two short-sellers had alleged that Cassava Sciences published information that contained manipulated images in its research.
FDA said it could not launch an investigation on the petition of the short-sellers, saying that it only reviews orders or regulations issued by the agency.
The US Securities and Exchange Commission is still investigating the allegations by the short-sellers regarding the statements Cassava made to the public investors.
Cassava CEO Remi Barbier says the FDA’s decision is welcome, citing the allegations by the short-sellers as false.
The alleged manipulated research data by Cassava was published by the Journal of Neuroscience which said it did not find any evidence of manipulated data.
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