(Bloomberg) Cassava Sciences Inc. stock recorded a 30% plunge after a former SEC lawyer raised concerns over the integrity of its trial results for an experimental Alzheimer drug.
Former SEC’s lawyer Jordan Thomas said some of the company’s trial data showed signs of manipulation, an allegation that Cassava denies.
The concerns come, days after the company agreed with the US regulators on a trial involving a larger study, which was set to start this year.
JonesTrading analyst Soumit Roy says the data concerns have some validity, although he says they are potentially over-interpreted, with digital analysis of figures dating back more than 15 years ago.
Cassava’s stock has risen more than 1,600% this year as traders grew optimistic of the trials on Alzheimer drug, despite the company having no product to show
Bearish bets on Cassava are now projected to be about $576 million or 13% of the available shares of the company, up from the February lows.
SAVA: NASDAQ is down -30.41%
