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Bullish option flow… Bullish option flow detected in Cassava Sciences with 5,716 calls trading, 1.1x expected, and implied vol increasing over 2 points to 170.21%. May-22 25 calls and May-22 17 puts are the most active options, with total volume in those strikes near 1,600 contracts. The Put/Call Ratio is 0.42. Earnings are expected on August 3rd. | ||||
Latest data shows the… Latest data shows the largest indicative borrow rate increases among liquid option names include: Cenntro Electric Group (CENN) 81.67% +44.35, (CRGE) 31.93% +3.35, Cassava Sciences (SAVA) 29.21% +1.25, Nu Holdings (NU) 25.12% +0.77, Asensus Surgical (ASXC) 1.37% +0.59, Microvision (MVIS) 11.18% +0.49, Companhia Siderugica Hacional (SID) 1.71% +0.36, Sweetgreen (SG) 78.22% +0.29, Inspirato (ISPO) 55.00% +0.22, and Direxion Oil & Gas 3x Bear ETF (DRIP) 10.81% +0.22. | ||||
Univest Securities… Univest Securities analyst James Jang noted that Cassava Sciences released Q1 results on May 5 that showed enrollment in the company's Alzheimer drug clinical trials has increased, but he said enrollment still "severely lags" behind the pace of other trials in the space. At the current rate of enrollment, both phase 3 trials could be fully enrolled in about eight years, said Jang, who keeps a Sell rating and $8 price target on Cassava Sciences shares. | ||||
B. Riley analyst Mayank… B. Riley analyst Mayank Mamtani lowered the firm's price target on Cassava Sciences to $58 from $72 and keeps a Buy rating on the shares post the Q1 results. The analyst says the ongoing CUNY investigation of scientific collaborator, Dr. Wang, "remains a key overhang somewhat diluting the potential risk/reward," which he views to be largely baked into the equity underperformance. | ||||
H.C. Wainwright analyst… H.C. Wainwright analyst Vernon Bernardino said Cassava Sciences reported "positive developments" with patient enrollment in the company's Phase 3 clinical programs with simufilam in Alzheimer's disease, or AD. With "momentum regained," he thinks the uptick in enrollment removes concern on simufilam's clinical progress, said Bernardino, who believes Cassava can complete enrollment by early 2023 and thinks an announcement of completion of enrollment in the first of two studies in Q4 of 2022 could be a positive catalyst for the stock. Following the Q1 update, Bernardino reiterates his Buy rating and $124 price target on Cassava shares. | ||||
"We're seeing… "We're seeing an uptick in the rate of patient enrollment," said Remi Barbier, President & CEO. "In part, the pandemic challenged some clinical sites, from staffing shortages to operational gaps. We hope these challenges are in the rearview mirror as we continue to move forward with our Phase 3 studies of simufilam in Alzheimer's disease, while keeping an eye on the balance sheet." | |
Pre-earnings options… Pre-earnings options volume in Cassava Sciences is normal with calls leading puts 8:5. Implied volatility suggests the market is anticipating a move near 7.2%, or $1.45, after results are released. Median move over the past eight quarters is 5.0%. | |
Univest Securities… Univest Securities analyst James Jang keeps a Sell rating on Cassava Sciences with an $8 price target after the company's CEO Remi Barbier responded to a New York Times article from April 18, claiming experts were not impartial and had financial incentives to negatively influence Cassava. "We find it odd that SAVA did not disclose that the CEO's wife, Dr. Burns could be categorized in a similar vein," Jang tells investors in a research note. Barbier failed to mention that his wife, Dr. Burns, VP of Neuroscience at Cassava, a scientific collaborator of Dr. Hoau-Yan Wang, and an insider of Cassava can be seen as holding a positive bias for the company, says the analyst. | |
In a letter that Cassava… In a letter that Cassava Sciences sent to the Science Editor of the New York Times that was disclosed in a regulatory filing, the company stated in part: "Regarding The New York Times article, 'Scientists Question Data Behind an Experimental Alzheimer's Drug', by Apoorva Mandavilli (April 18, 2022): we're disappointed the reporter relied almost exclusively on sources known to be critical of Cassava Sciences, failed to report on conflicts of interests and misrepresented our Company. It appears this reporter had a pre-set narrative and wrote an article to fill in the plot. That hardly fits with The New York Times' reputation of producing a solid, fair investigative piece. The reporter states she contacted nine sources. Seven of those had previously made critical, negative statements about Cassava Sciences, all readily accessible by Google or Twitter search. By double-tapping into sources known to be negative, the reporter seems to have exploited a negativity bias to make a pre-determined point. This flies in the face of objectivity... Cassava Sciences competes zealously with large and small biopharmaceutical companies, but we deal with competitors openly and honestly. We do not invent obstacles to hamstring their efforts. Like the New York Times, we observe standards that govern our dealings with critics and colleagues alike. We only wish the New York Times reporter had treated us the same way. From the onset of the short attack against Cassava Sciences I have said that allegations of research misconduct are false. I believe in our science, our people, our clinical programs and our academic collaborator at CUNY, Professor Hoau-Yan Wang. Some of our vocal critics made obscene amounts of money using extreme tactics: filing a Citizen Petition with FDA, reaching out to government agencies and launching a campaign against us. We are disappointed The New York Times reporter failed to see through this agenda. Those who stifle potential new treatments for Alzheimer's are attacking patients, pure and simple. The burden of Alzheimer's is devastating. Patients' lives are at stake, and our drug may help. In the end, proof will be in the clinical data itself. Phase 3 studies will prove or disprove the safety and efficacy of simufilam in Alzheimer's disease. The rest may be noise, competition, profiteering or sour grapes. I had hoped a fair-minded reporter would see and report it as such." Reference Link | |
Bullish option flow… Bullish option flow detected in Cassava Sciences with 7,181 calls trading, 3x expected, and implied vol increasing over 2 points to 164.49%. 4/29 weekly 25 calls and 4/29 weekly 23 calls are the most active options, with total volume in those strikes near 1,800 contracts. The Put/Call Ratio is 0.28. Earnings are expected on May 2nd. |
