Cassava Sciences: Alzheimer's Solution Shows Promise After Positive Phase 2a Trial

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About: Cassava Sciences, Inc. (SAVA)
by: Edmund Ingham
This article is exclusive for subscribers.
Edmund Ingham
Deep Value, momentum, event-driven, long-term horizon
Summary

Cassava Sciences - formerly Pain Therapeutics - has rebranded itself and allocated all of its resource to a new Alzheimer's drug candidate PTI-125 and diagnostic test PTI-125Dx.

PTI-125 targets altered form of "scaffolding" protein Filamin A ("FLNA") which disrupts the normal function of neurons.

Positive data from phase 2a clinical trial has led to optimism and a spike in the share price. Further data from a follow-on trial could be available in Q120.

Alzheimer's has resisted all attempts to find a remedy to date, hence PTI-125 should be treated with caution, but this novel approach may have promise.

Investment Thesis

Pain Therapeutics finally gave up on its tamper-resistant opioid treatment Remoxy after its fourth rejection by the FDA in August 2018. (Source: Endpoints News). Management decided to rebrand as Cassava Sciences Inc. (NASDAQ: