B. Riley analyst downgrades Cassava Sciences over limited data disclosures

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B. Riley analyst Mayank Mamtani downgraded the biotechnology company Cassava Sciences (SAVA) over limited relevant data disclosures.

Mamtani lowered the company to Neutral from Buy, with the price target maintained at $44.

The stock was trading ~9% down after the ratings action.

The company said it enrolled over 650 patients in Phase 3 program and new clinical data for Alzheimer's disease candidate Simufilam was expected, as part of its Q3 results.

In October, Cassava Sciences said it has begun an open-label extension study of Simufilam that will last a year.

In September, SAVA was trading over five-month high on rising volumes. The rally coincided with two recent insider purchases, including those from Directors Sanford Robertson and Richard Barry.

The analyst believes recent non-material pipeline and corporate developments, including as part of the Q3 results, "do not necessarily explain" why shares have rallied.

Mamtani is encouraged by the pace of enrollment in Phase 3 Alzheimer's trials, but his thesis is adversely impacted by limited available data from the ongoing Phase 2 open-label studies.

SAVA shares have lost ~40% of their value in the last one year, but gained ~78% of value in the last six months. Here is a look at the share price movements: