Shares of biotech company Cassava Sciences Inc. took a severe hit in extended trading on Thursday. The sharp decline comes after a report by Science magazine exposed allegations of “long-standing and egregious misconduct” against a neuroscientist who frequently collaborated with the company.
Cassava Sciences’ stock, listed as SAVA, experienced a nearly 40% drop in after-hours trading, reflecting investor concerns surrounding the revelations.
According to Science magazine, an investigation conducted by the City University of New York concluded that Hoau-Yan Wang, a faculty member at the university, committed acts of “scientific misconduct” across 20 published research papers. Of particular significance, many of these papers provided crucial support for simufilam, an experimental Alzheimer’s drug that Cassava has been diligently working on.
The repercussions of this controversy are significant for Cassava Sciences. The plummeting stock prices highlight the seriousness of these allegations and have raised concerns about the authenticity and reliability of the company’s research efforts.
In conclusion, this revelation is likely to have a lasting impact on Cassava Sciences and its pursuit of developing simufilam as a potential Alzheimer’s treatment. The allegations of scientific misconduct warrant thorough scrutiny and potential repercussions for all involved parties.