(WSJ) Shares of Cassava Sciences Inc. fell more than 23% on news that the SEC was examining whether the company manipulated data on their Alzheimer drug.
The investigation by the SEC follows a public petition filed in August with the Food and Drug Administration by two physicians who doubted Cassava’s research.
The Nation Institute of Health is also investigating the claims, with the body and its partners already having funded Cassava $20 million for the drug development.
Cassava has said it is collaborating with the investigations, saying the probe does not suggest any wrongdoing by the company.
Some researchers, including an image-manipulation consultant and microbiologist Elisabeth Bik have poked holes in Cassava after duplicated images from other studies were found on its experimental results.
Prospects of the Alzheimer drug has made Cassava Sciences the sixth-performing stock in the US this year, with the investigation now attracting short sellers.
SAVA: NASDAQ is down -23.25%.
